Switching Jobs
Option 1: Your COBRA option allows you to continue your coverage under your current health insurance group plan, once your previous employer is no longer paying for it. If you have not already received information on your COBRA options, contact your previous employer to verify your eligibility and request more information. The main reason that people do not accept their COBRA coverage is cost. The monthly premiums associated with COBRA coverage can be costly, especially for those that are temporarily without an income. If cost is not an issue, accepting your COBRA coverage may be your best option. You will continue on your current coverage until you are eligible for coverage under your new group health insurance plan. You will not need to shop for other health insurance options, you will not need to change physicians or medical groups, and you will not risk a lapse in coverage. COBRA coverage can be available for as long as 36 months, and you can usually cancel the policy at anytime. Option 2: A short-term health insurance policy can be purchase for a specified length of time, usually from 30 days to 6 months. This type of health plan is designed to insure you during those “in-between” times while you are waiting to start a new health insurance policy. A temporary health insurance policy is usually a catastrophic type health plan that is purchase to protect you against an unexpected illness or injury. This type of health insurance policy may not provide coverage fro pre-existing conditions, office visits or out-patient prescription drugs. Most short-term health plans are reasonably priced and easy to get and coverage can usually begin as soon as the day following your application submittal. However, if you are between health insurance plans and elect to enroll in a short-term health plan instead of accepting your COBRA coverage, there are some possible cons worth your consideration. Most short-term health insurance policies will not give you credit toward continuous coverage, so your new insurance company may consider you to have had a lapse in coverage. This could affect your pre-existing exclusionary periods on your new group health plan. The other thing to consider is that your short term health insurance policy will expire, usually in 6 months. If, for some reason, you are unable to start your new job, you will soon find yourself without health insurance again. Option 3: Individual health insurance is probably the next best option, if you are not able to accept your COBRA options. An individual health plan is a permanent policy and will be considered as creditable coverage by your new insurance company. This prevents any lapse in coverage and the potential of a pre-existing condition exclusionary period. Also, if you choose to not accept the coverage available through your new employer, you are still insured under a permanent health insurance policy. The main drawback on individual health insurance is that the application process and approval time can be lengthy and involved. If you have current health problems, you may not be eligible for this type of coverage, or medical records may be requested which will delay the approval time and effective date of coverage. If you are healthy and with no pre-existing condition some insurance companies will approve you for individual health insurance within a couple of days. To better understand the many options available to you, consider contacting a licensed health insurance broker in your state. 1 CommentLeave a comment |
|
I am switching jobs and will not be able to get into my new group health program for 3 months after I start. I have already left my current job and will not start my new job for 3 weeks. My current health insurance will end in 2 weeks at the end of the month. Is there a type of insurance that I can get that will cover me for 3 1/2 months?
You have a few of options available to you: 1) Accept the 
Hello! I need to get some cheap medical health insurance for only a few months while I find a new job! I just got laid off from the company I have worked for the last few years due to downsizing, so I should be eligible for COBRA right? The thing is, I don’t want to have to sign up for COBRA as it is just do expensive. I don’t really need a comprehensive health plan anyway as I am young and in good health. Basically I am looking for something to keep me from going bankrupt if I must go to the ER for some reason. I’ve heard that ER fees can be extremely high especially in my state because of all the litigation. What do you suggest I do? There must be something that is cheaper than COBRA if only for a few months.
Comment by Mary Ann — June 19, 2009 @ 11:38 am