Short Term Health Insurance Blog
Wednesday, May 16, 2012
- 06
May
2011 -
COBRA or Short Term Health Insurance – Which is Right for Me?
Filed Under: Blogging
COBRA coverage is something that employers must offer all departing employees. It allows an employee to continue on with the same insurance plan they had while employed, but at a different rate plan. Therefore, it offers you the convenience of being able to stick with a healthcare plan you are already familiar with. Many people appreciate that convenience. However, the rate structure is far more expensive than what you paid while employed, including very high premiums. For example, a plan that may have cost you a couple of hundred dollars per month to support yourself and your family may cost you upwards of $1,000 under COBRA.
Short term health insurance is a second option for maintaining insurance coverage after your employment ends. While it does not offer you access to the exact same plan you were using while employed, it does give you access to plans which are often very comparable. You will be able to provide your family with all the necessary coverage elements, including emergency room care, inpatient and outpatient coverage, and prescription medication savings. The other major difference from COBRA is that this type of temporary insurance is much cheaper. You will pay only a fraction of what you would pay under COBRA.
So essentially, the decision between COBRA and a short term plan will likely come down to two factors; convenience and cost. How important is it to you to keep your old plan? If for some reason that is very important to you, then you need to measure that value against the high cost that COBRA plans include. If budget is more important to you, and you don't mind switching to a different plan to save money,then you will appreciate the value that a short term plan provides.