When people find themselves suddenly unemployed, health insurance tops their list of “concerns.” In such situations, it is worthwhile to look at short term health 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.
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 alternatives to COBRA insurance in cost.
If you are put off by the lengthy underwriting processes characteristic of long term insurance, health insurance for unemployed 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 alternatives to COBRA insurance coverage.
When you purchase a short term health 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.
When you opt for short term health insurance, you can choose from a range of plans and options. Not only does the maximum benefit amount differ by plan, applicable deductibles and co-pays can be customized as well. If you are an early retiree, for example, the plan you end up with will be very different than that of a young part-time employee.
Depending on the plan, alternatives to COBRA insurance 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 COBRA insurance alternatives!
Dan Miller enjoys writing about short term health insurance
