Short term health insurance is an option for continuing health coverage during unemployment

With layoffs and employment terminations so common these days, it’s important to understand what can happen with your health care benefits. There are two basic options for continued coverage: choosing COBRA, or purchasing a new short term health insurance policy.

COBRA is an extension of your current health insurance. The benefits are exactly the same, with the same deductibles and same providers. The only difference is, you now pay a monthly premium.

The pros of COBRA are pretty clear: no concerns about figuring out new policy guidelines or having to switch doctors. You also don’t have to worry about pre-existing conditions, as you’re already covered. On the downside, however, it can be extremely expensive to maintain. If your current insurance provides vision and dental coverage, you may have to pay extra to continue those with COBRA.

In cases where COBRA is not offered, or if it is outside your budget, purchasing a new short term health insurance policy is the alternative. These policies have very low premiums, usually just a fraction of what COBRA costs. Coverage is more limited too, however, most expensive procedures are covered even if preventative or routine care is not. Vision and dental are generally not included.

Both plans have very limited time frames of coverage. COBRA is only available for six to eighteen months. Short term health insurance policies vary; many are good from between one and six months. However, when a policy expires you can often get a new one, even if you cannot renew it. This can extend benefits for up to three years, under some providers.

COBRA is only for those who only recently lost access to insurance coverage, since it is simply an extension of those benefits. Because of this, it’s not an option available for those who did not hold a policy previously. But short term health insurance is available to almost anyone.

The purpose of short term health insurance
When to buy short term health insurance
Short term health insurance pros and cons
Short term health insurance is an option for continuing health coverage during unemployment