• Short Term Health Insurance Blog

  • Friday, November 24, 2017

  • The Short-Term vs. COBRA Insurance Debate-III: Creditable Coverage

    Filed Under: Blogging


One of the most important things to consider when getting off the employer’s health insurance plan (by choice or otherwise) and opting for short term health insurance is creditable coverage. What this means is that when you are eligible for long term health insurance, the underwriting process will check whether you have been continuously covered during the period you did not have long term health insurance.

Your premium and pre-existing conditions coverage will depend on whether or not you have had creditable coverage in the intervening period. COBRA insurance counts toward creditable coverage—that is, if you’ve had COBRA in the intervening period, it does not show as a break in coverage.

It is a myth that short term health insurance does not count toward creditable coverage: Most new short term health insurance plans count toward creditable coverage. It is best to check with your insurance provider whether the temporary insurance plan you have chosen will count toward creditable coverage when you get back on a long term insurance plan.

Creditable coverage is also defined by the number of days of break—currently, it is 63 days. This means that you cannot afford to wait too long before signing up for a plan, whichever plan you choose.

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