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.
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.
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. What if you only purchase 6 months and then you find yourself needing longer. You will either be srambling around for more or you will have to reapply for the same one. This may not be something you care to deal with.
2. Because temporary health insurance does not cover any pre exisitng conditions, ignoring this fact could cost you big time. You should also keep in mind that if you take a temp plan and then get sick, once the term is the new condition is then called pre exisitng and will not be covered if you have to extend the 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. - 15224
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.
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.
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. What if you only purchase 6 months and then you find yourself needing longer. You will either be srambling around for more or you will have to reapply for the same one. This may not be something you care to deal with.
2. Because temporary health insurance does not cover any pre exisitng conditions, ignoring this fact could cost you big time. You should also keep in mind that if you take a temp plan and then get sick, once the term is the new condition is then called pre exisitng and will not be covered if you have to extend the 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. - 15224
About the Author:
Are you are need of temporary health insurance or would like to know more about your choices call 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.
