Temporary Health Insurance Policies A Viable Alternative Health Insurance for Unemployed
When people find themselves suddenly unemployed, health insurance tops their list of “concerns.” In such situations, it is worthwhile to look at alternatives to COBRA insurance, with its myriad features, as a possible option.
Short term health insurance can work best for you in specific situations: say, you’ve just graduated from college, or you are a part-timer who needs health insurance. If you are waiting for more long-term coverage, for instance, you’ve retired early and are waiting for Medicare, temporary health insurance can neatly fill in the coverage gap.
As soon as you lose employment, voluntarily or not, the one avenue for health insurance that strikes you is COBRA insurance. While COBRA continues long-term coverage without a break, it is expensive, sometimes even beating short term health insurance in cost.
If you are put off by the lengthy underwriting processes characteristic of long term insurance, temporary health insurance offers just the opposite experience: simple and easy underwriting, with plans becoming valid as early as the next day. If you have any pre-existing conditions, though, they will not get health insurance for unemployed coverage.
When you purchase a alternatives to COBRA insurance plan, you will be covered for any illness or injury that did not exist earlier, as defined by the look-back period. You will be covered for inpatient and outpatient care including surgery, diagnostic examinations and prescriptions, and also for ambulance services. Your plan might also cover scheduled doctor visits.
As with any temporary plan, alternatives to COBRA insurance does not cover pre-existing conditions, pregnancy, cosmetic surgery, and eye and dental care.
Short term insurance plans come in many flavors, and each plan usually features many deductibles and co-pays to choose from. Plan premiums also depend on the maximum coverage chosen, so that different folks can choose different plans that work for them.
With its myriad plans and coverage, temporary health insurance is ideal in certain situations, but cannot substitute long-term health insurance. It’s best for periods less than one year, but in most cases, the plan you choose can be renewed monthly, for 6-12 months.
Dan Miller frequently writes about COBRA insurance alternatives