Short Term Health Insurance Blog
Wednesday, April 26, 2017
What to do When COBRA Costs Too MuchFiled Under: Blogging
With unemployment rates continuing to soar during the current global economic uncertainty, people are finding themselves without insurance because they have either lost their jobs or taken a new position which does not immediately offer health insurance. Simply going without coverage is not a viable option because of the high cost associated with even the most basic healthcare needs.
COBRA care providers great coverage and benefits to policyholders, but it comes with high administrative fees that cancel out any savings the policyholder was used to enjoying under their old plan. Plans have been reported to average as much as $1,000 per month for family coverage. If you have lost your job, you certainly do not have that sort of money to put towards COBRA each month.
Short term health insurance provides a much more cost effective solution. It offers a variety of coverage at a low premium rate. Policyholders also like it because it can be purchased only for the amount of time it is needed. For example, if someone has taken a new position that doesn’t offer insurance for 3 months, they can buy 3 months worth of coverage rather than being locked into a year’s worth and paying for 9 months they don’t need. This flexibility is part of what makes short term an attractive alternative to COBRA.