• Short Term Health Insurance Blog

  • Friday, November 24, 2017

  • Temporary Insurance and COBRA Coverage: What Is Best for You?

    Filed Under: Blogging

One of the questions you need to ask yourself when you are considering short term health insurance is this: What are my reasons for getting short term health insurance? In many cases, temporary insurance is seen as a COBRA insurance alternative.

Typically, when you are laid off from your job, you are given the option of continuing your current health insurance plan under COBRA coverage, for a maximum period of 18 months. With the recent downturn in the economy, this COBRA insurance is heavily subsidized. However, with the economy showing signs of recovery, the subsidy may not last long.

Also, COBRA insurance comes with its own set of stringent rules. In this case, short term health insurance is a great alternative, and offers coverage at a much lower rate. The only thing to look for is that the short term health insurance plan that you do purchase counts toward creditable coverage.

If you do purchase short term health insurance, consider the duration of the plan: How long do you want insurance for? If it is only for a few months, then purchasing a short term plan for around three months may make a lot of sense. However, always remember that short term health insurance cannot replace long-term health insurance, and you must move over to more permanent coverage when possible.

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