COBRA insurance alternatives
Carmen is suddenly unemployed. She does not want to take a risk of having no health insurance. So she looks to all of her options. She wants to make a smart decision.
COBRA is mandated for employers with 20 or more employees. It mandates that they must allow past employees maintain their health insurance for at least 18 months if they so choose. This option tends to be very costly however!
The reason COBRA is expensive is due to a few things. First, you pay the total premium (what you had paid, plus the employer contribuation). Second, they often add administrative fees on top of that.
Before opting out of COBRA you should loo at your health. Carmen has high blood pressure and has to take 2 medicatins. She is also expected to make regular visits to her doctor. Her husband however is very healthy!
Since Carmen has a pre exisitng condition she would want to take advantage of the COBRA option. Because tempoary health insurance excludes any pre existing conditions.But, if she would like to save money she could find a alternative for her healthy husband.
There are a few factors to consider besides health. Although health is a very important one. Here are a few things to consider as well:
1. Temporary helath insurance is just that....temporary. So if you purchase 6 months and then find you need it 12 months you may be trying to find more coverage at the last minute. So you should consider this.
2. Temporary health insurance does come with exclusions. It is not going to cover any pre existing conditions. Hence, the reason it is not a good idea for Carmen. If her husband develops an illness and then you have to extend the temporary insurance he will no longer be covered for that illness.
3. Temporary health insurance typically have high deductibles. These plans are meant as a sfeguard. Just in case you get an illness that has much expense. It is not meant for the occasional office visit, so you can expect to pay that out of your pocket.
COBRA is mandated for employers with 20 or more employees. It mandates that they must allow past employees maintain their health insurance for at least 18 months if they so choose. This option tends to be very costly however!
The reason COBRA is expensive is due to a few things. First, you pay the total premium (what you had paid, plus the employer contribuation). Second, they often add administrative fees on top of that.
Before opting out of COBRA you should loo at your health. Carmen has high blood pressure and has to take 2 medicatins. She is also expected to make regular visits to her doctor. Her husband however is very healthy!
Since Carmen has a pre exisitng condition she would want to take advantage of the COBRA option. Because tempoary health insurance excludes any pre existing conditions.But, if she would like to save money she could find a alternative for her healthy husband.
There are a few factors to consider besides health. Although health is a very important one. Here are a few things to consider as well:
1. Temporary helath insurance is just that....temporary. So if you purchase 6 months and then find you need it 12 months you may be trying to find more coverage at the last minute. So you should consider this.
2. Temporary health insurance does come with exclusions. It is not going to cover any pre existing conditions. Hence, the reason it is not a good idea for Carmen. If her husband develops an illness and then you have to extend the temporary insurance he will no longer be covered for that illness.
3. Temporary health insurance typically have high deductibles. These plans are meant as a sfeguard. Just in case you get an illness that has much expense. It is not meant for the occasional office visit, so you can expect to pay that out of your pocket.
About the Author:
If you are need of temporary health insurance or would like to know more about your options contact Agent Jeff Cline. He is an professinal at COBRA replacements. If you decide you would like permanent individual health insurance he can help you with that also. He can be reached anytime at his toll free number 866-526-9669.
posted by Credit Counseling at
5:10 PM
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