COBRA vs Short-Term Insurance
We would suggest waiting to find out how much your COBRA payment will be, and then compare it to the cost of various short-term health plans. Unless the savings is substantial, it would probably be in your best interest to make the COBRA payment. Once you receive your COBRA notification letter, you will have 60 days to decide if you want to accept it. By that time, you will be qualified for your new health plan, so there will no longer be an issue. Even though you have 60 days to decide on your COBRA, that insurance company will not pay for any claims unless you pay the premium. 4 CommentsLeave a comment |
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I just left my job and will be starting a new job on February 1st. My old insurance ends at the end of January, but I won’t be able to start on the insurance with my new company until April 1st because I have to wait 60 days. I know I can take COBRA with my old company, but it will probably be expensive. I see that you have short-term health insurance. Would it be cheaper for me to just get that instead of getting the COBRA?
A 60 day short-term health insurance policy would probably be cheaper, but it might not be the best thing for you to do. There are several factors that would determine if making the choice to save money on your insurance premium for 60 days would be in your best interest. One of the primary things you need to consider is the issue of creditable coverage, if you have any pre-existing medical conditions. Since your lapse in coverage will only be 60 days, actually 59 because February only has 28 days, you will not have a lapse in coverage as defined by federal HIPAA regulations. However, purchasing a short term health insurance policy could disqualify you from HIPAA eligibility in the event that something unforeseen was to happen and you were unable to be added to the group health plan of your new employer. Not all short-term health plans are considered creditable coverage, so you would need to be very cautious about what you purchase.
I started a new job on Dec. 18. my former company’s insurance will cover me through the end of the month, however my wife and I will not be insured on my new job until Feb. 1. The problem is…my previous employer changed insurance company effective /ending Dec 31, thus leaving me without an option of continuing their coverage The new insurance company’s coverage will start on Jan. 1 but will not cover me because I am no longer employed there. That change will occur the same day my insurance benefits end. The old employer human resource rep. insists I don’t need coverage however in researching the matter I believe my wife and I will have pre existing claus in our new benefits with the new employer.Since we have several health issues the require maintainence and ongoing medications continual coverage is essential. Who do I contact and what insurance co. do I contact? this has to be taken care of ASAP. Please reply.
Comment by Day Day — December 25, 2007 @ 5:23 pm
Even though your previous employer has switched insurance carriers, you should still qualify to be included on the group plan with that new insurance company. An insurance company must provide coverage to not only the current employers of the company, but also any ex-employee that is eligible for COBRA.
Comment by admin — December 26, 2007 @ 9:37 am
My previous employer had COBRA information sent to me and they want over $900/month to cover my spouse and me which is not affordable for us. We will have coverage as of Feb. 1 with my new employers insurance.What is the law concerning pre-existing conditions? We were told you have to be without coverage for over 60 days to have restricted coverage due to pre existing conditions. We are getting mixed messages from previous and current employers.Please advise. thank you.
Comment by Day Day — December 26, 2007 @ 7:34 pm
In my opinion short term health insurance can be a cheap alternative to COBRA, but you have to remember this won’t last forever as you will get new work or be called back to get your previous job back. So in reality you just need something to bridge that short gap between employments. I think, although cheap, that short term insurance can very useful for just that. If you are thinking, just how cheap are they really, I have found them as low as 20$ a month or at least almost always under $100 a month. There are some drawbacks though with short term insurance, in particular that they put many restrictions on pre existing conditions, so if you have some medical condition or are pregnant, the these may not be right for you. If on the other hand if you are generally healthy then this could easily be the right choice for you.
Comment by John — May 30, 2009 @ 11:35 am