• Short Term Health Insurance Blog

  • Monday, May 22, 2017

  • Short Term Insurance Eases COBRA Subsidy Sting

    Filed Under: Blogging


The future of one of the biggest insurance subsidies in the U.S. for those out of jobs, the COBRA insurance subsidy, hangs in the balance. While short term health insurance is a viable alternative to COBRA, it is often not the first choice for people.

The current issue has to do with the fact that the subsidy for COBRA insurance, which makes it the first option that employers suggest, has not been renewed for terminations after February 28, 2010. COBRA carries nearly a two-thirds subsidy, which brings the costs of insurance down to affordable levels for many. However, short term health insurance rates are comparable to those of COBRA even after keeping in mind COBRA's subsidy.

While this is bad news for some, remember that temporary insurance offers many of the same benefits as COBRA insurance, and in some cases, offers more flexible options as well. The underwriting and eligibility requirements for short term health insurance, for instance, are not as stringent as those of COBRA insurance.

It remains to be seen whether the eligibility period for COBRA subsidy will be extended. Short term health insurance offers coverage throughout the United States, and covers most sudden medical conditions and injuries. Short term health insurance is also counted as comparable coverage when applying for a new group plan.

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