• 06
  Aug
  2010

• The High Costs of COBRA Make Short Term a Smart Solution

  
  Filed Under: Blogging

COBRA coverage has long been the best-known insurance option for people losing or leaving a job. This coverage is relatively easy to obtain, and since most human resources departments mention it during exit interviews and termination meetings, a lot of people think it is their only option. While it is certainly a convenient path for people to take, it can also be an unnecessarily expensive one. Short term health insurance offers significant cost savings over COBRA.

While COBRA care will allow you to maintain the same level of insurance coverage you had at your prior employer, including the cost savings of co-insurance rates, there are other new expenses which will come into play. For example, COBRA plans have very high administrative costs.

What does this mean? Well, while you may still pay the same low rate you are used to at the doctor's office, the fees you will pay for claims processing and other administrative items are so expensive they will negate your savings. You'll end up spending much more than you anticipated under these plans.

Short term health insurance is equally easy to buy, and it does not come with these annoying fees. You will enjoy savings at te time of your doctor's visit or hospital stay, and you will keep the money you saved where it belongs - in your pocket. Be sure that if you lose or leave your job, you explore all the available health insurance alternatives.

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