Finding a alternative to COBRA
Carmen knows that going without health insurance can be a financial disaster to her family, so when she lost her job as a sales person she looked at all her options. Carmen has no idea how long she may be out of a job so she does not want to go uninsured.
Carmen knows she has the COBRA insurance option. She also knows how expensive it can be. COBRA mandates that an employee can keep their health insurance for up to 18 months if they become unemployed for any reason.
COBRA insurance typically has a big price tag. Once the employer takes away their contribution and add admin fees the premium could double. Many people find this price tag hard to handle.
When looking into your options there are a few things to consider. One is your pre exisiting conditions. If you have an illness that requires medical attention or medications. Then you should opt for COBRA.
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.
Before committing to a temporary health insurance plan there are a few factors to closely consider. Temporary health insurance can be an excellent alternative, but does have some drawbacks.
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. 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.
Carmen knows she has the COBRA insurance option. She also knows how expensive it can be. COBRA mandates that an employee can keep their health insurance for up to 18 months if they become unemployed for any reason.
COBRA insurance typically has a big price tag. Once the employer takes away their contribution and add admin fees the premium could double. Many people find this price tag hard to handle.
When looking into your options there are a few things to consider. One is your pre exisiting conditions. If you have an illness that requires medical attention or medications. Then you should opt for COBRA.
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.
Before committing to a temporary health insurance plan there are a few factors to closely consider. Temporary health insurance can be an excellent alternative, but does have some drawbacks.
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. 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:
If you are need of temporary health insurance or would like to know more about your options call Broker Jeff Cline. He is an expert at COBRA replacements. If you decide you would like permanent individual health insurance he can help you with that also. He can be contacted anytime at his toll free number 866.526.9669.
posted by Debt Consolidation Loan at
6:17 PM
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