Posts Tagged ‘temporary insurance’

Short Term Health Insurance A Feasible Alternative To COBRA Insurance

Sunday, April 4th, 2010

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 medical insurance is ideal for those who are recent graduates, in between jobs, waiting for employer insurance to kick in, and part-time employees. Early retirees can also purchase COBRA insurance alternatives to tide over the period before Medicare benefits can be availed.

The first option that comes to mind when someone loses employment is COBRA insurance. The general perception of COBRA continuing coverage sometimes makes people think that the rates will remain the same, but the rates increase as soon as the employer-sponsored part ceases. That makes COBRA coverage more expensive than employer-sponsored and even short term health insurance.

Short term health insurance does not feature lengthy underwriting procedures, and typically, coverage begins the day after application. It is perfect for those with COBRA insurance alternatives insurance needs, especially people with no significant pre-existing conditions, which are not covered by short term health insurance.

Short term insurance covers most sudden medical illnesses and accidents. Plans usually include coverage for outpatient care, hospitalization, diagnostic tests, surgery, and ambulance charges. Doctor visits are also covered by most plans, subject to the applicable deductible and co-pay.

If you purchase a short term health insurance plan, you will not be covered for pregnancy and maternity, and most optical and dental treatment. Cosmetic surgery, unless performed as part of reconstruction therapy, is also not covered, along with previously existing conditions.

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.

Depending on the plan, health insurance for unemployed can usually be purchased monthly, for 6 months or up to 1 year. However, it is ideal for periods less than or around one year, and cannot replace long-term medical insurance in the long run. Remember that when the going gets tough, the tough turn to short term health insurance!

Dan Miller frequently writes about temporary health insurance

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Short Term Insurance An Alternative To COBRA Insurance

Tuesday, February 9th, 2010

When one has recently been given the pink slip, COBRA insurance usually steps in to continue coverage. However, its price tag could be very steep, and a better alternative might be temporary insurance. These days, this cost distinction becomes even more important.

You might have heard the term COBRA insurance being bandied about at your workplace. It is essentially coverage that commences after a person loses his/her employment, so that coverage is continuous. But then, you might not be aware that COBRA coverage is often more expensive, and that you may not automatically qualify for it. In this scenario, temporary insurance provides a viable alternative.

Your short term insurance plan is also called temporary insurance, and offers typical short term benefits: primarily unexpected medical illnesses. A range of benefits including physician consults, hospitalization, prescriptions, diagnostic exams, ambulance services, and emergency care are usually part of the short term health insurance plan. As short term benefits usually go, you will not be covered for previously existing conditions and pregnancy.

Short-term medical insurance can be purchased for a month, to a year, in most cases. The policy can usually be renewed quite easily; however, some plans consider each renewed policy as a new one, applying pre-existing conditions and premium clauses accordingly.

It is important to remember that short term medical insurance cannot be an adequate long-term health insurance plan. It is primarily meant as coverage for temporary periods. Long term health insurance plans offer several critical benefits not often available to the short term health insurance customer: scheduled physician visits and maternity, for instance.

When getting back on a regular long-term health plan, short-term medical insurance can often be counted toward creditable coverage for group plans. Labeling an insurance plan as creditable coverage means that the plan counts as equivalent coverage when determining pre-existing conditions and effective continuous period of coverage. Short-term medical insurance plans are usually not considered creditable coverage for individual plans.

You can easily purchase short term health insurance online. Since the plan is temporary, you are not usually subjected to lengthy underwriting procedures.

Short-term medical insurance works best for people who are looking for stop-gap insurance between jobs and if insurance is expected to be required for six months or less. It can provide a viable alternative to COBRA insurance in case of a person losing his/her job. In that uncertain situation, short-term health insurance can step up to the plate and deliver.

Dan Miller often writes about short term insurance.

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