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.
She has been offered COBRA insurance from the employer she left. It is very expensive and she fears she can not afford that. COBRA states that you can keep your employer sponsered insurance for up to 18 months and is offered by employers with 20 or more employees.
In addition to your employer adding administrative fees to your premium, the COBRA premium is also someimes doubled. Why is this you ask? Well, the reason being is that the no longer make a contribution. So you are paying the total premium plus admin fees.
Due to the cost of COBRA insurance many people look to the alternatives like temporary health insurance. Carmen and her husband were on her employer sponsored plan. Her husband is very healthy. Carmen has high blood pressure and requires medication and regular MD visits.
Pre exisiting conditions are excluded on temporary health insurance plans. So Carmen may decide to take the COBRA to cover her high blood pressure. Since Jose, her husband is healthy she can find an affordable temporary plan for him.
Health is one of the factors to consider when looking into COBRA alternatives. But there are a few more things to consider. Here are just a few:
1. You can typically only purchase temporary health insurance for a short amount of time. 6 months to a year max. So if your period of being uninsured is prolonged you could find yourself looking for other alternatives.
2. Due to the pre exisitng exclusions it temporary health insurance may not be the best option. You also have to think about if you opt for temporary insurance and then you find yourself needing more time. If you have contracted an illness in the original term, it will not be covered in the new term.
3. Temporary health insurance will not cover things like office visits. You will have to pay for that out of opocket due to the high deductible you have to meet. This insurance can keep you out of financial debt incase something really costly happens however.
She has been offered COBRA insurance from the employer she left. It is very expensive and she fears she can not afford that. COBRA states that you can keep your employer sponsered insurance for up to 18 months and is offered by employers with 20 or more employees.
In addition to your employer adding administrative fees to your premium, the COBRA premium is also someimes doubled. Why is this you ask? Well, the reason being is that the no longer make a contribution. So you are paying the total premium plus admin fees.
Due to the cost of COBRA insurance many people look to the alternatives like temporary health insurance. Carmen and her husband were on her employer sponsored plan. Her husband is very healthy. Carmen has high blood pressure and requires medication and regular MD visits.
Pre exisiting conditions are excluded on temporary health insurance plans. So Carmen may decide to take the COBRA to cover her high blood pressure. Since Jose, her husband is healthy she can find an affordable temporary plan for him.
Health is one of the factors to consider when looking into COBRA alternatives. But there are a few more things to consider. Here are just a few:
1. You can typically only purchase temporary health insurance for a short amount of time. 6 months to a year max. So if your period of being uninsured is prolonged you could find yourself looking for other alternatives.
2. Due to the pre exisitng exclusions it temporary health insurance may not be the best option. You also have to think about if you opt for temporary insurance and then you find yourself needing more time. If you have contracted an illness in the original term, it will not be covered in the new term.
3. Temporary health insurance will not cover things like office visits. You will have to pay for that out of opocket due to the high deductible you have to meet. This insurance can keep you out of financial debt incase something really costly happens however.
About the Author:
Are you are need of temporary health insurance or would like to know more about your choices contact Agent Jeff Cline. He is an expert at COBRA replacements. Are you need a more permanent individual health insurance he can help you with that also. He can be reached anytime at his toll free number 866.526.9669.
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