COBRA is expensive - A Temporary Solution
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.
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.
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. 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 was designed to be a major medical safety net. It is not going to cover the common visit to the doctors office. The plans usually have high deductibles to meet also. So you can expect to pay some out of pocket costs.
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.
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.
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. 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 was designed to be a major medical safety net. It is not going to cover the common visit to the doctors office. The plans usually have high deductibles to meet also. So you can expect to pay some out of pocket costs.
About the Author:
Are you are need of temporary health insurance or would like to know more about your choices call Broker Jeff Cline. He is an expert at COBRA replacements. Are 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 Credit Counseling at
8:34 AM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home