Finding a alternative to COBRA
Carmen does not know how long she may be without insurance. She is aware what kind of financial burden she could insure if she goes without. But, after loseing her job as a sales person she is forced to look at all the options she has open to her.
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.
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.
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.
Most temporary medical plans will not cover pre existing conditions. For this reason Carmen should try to keep her COBRA insurance. But, there is no reason she shouldnt look for something more affordable for her husband.
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. 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.
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.
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.
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.
Most temporary medical plans will not cover pre existing conditions. For this reason Carmen should try to keep her COBRA insurance. But, there is no reason she shouldnt look for something more affordable for her husband.
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. 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:
Are you are need of temporary health insurance or need to know more about your choices contact Agent Jeff Cline. He is an expert at COBRA alternatives. Are 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
3:46 AM
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