COBRA Ran Out, Now What?
Posted by KT 11/18/2009
Thanksgiving is right around the corner. For many people, it will kick off the holiday season- but for some it means a big decision looming in the near future. In February of this year, lawmakers signed a bill, which temporarily discounted COBRA (Consolidated Omnibus Budget Reconciliation Act) health premiums for laid-off workers to alleviate some of the burden while they searched for work.
While this subsidy has been a blessing to thousands, the benefits were limited to nine months. Unfortunately, many people who were laid-off earlier this year are still struggling to find jobs. Those who took advantage of this government subsidy program when it first became available in March will soon need to either begin paying the true cost of COBRA, 102% of their total health premiums, or look into alternative options. According to the Kaiser Family Foundation, “an average family who is eligible for the subsidy, monthly premiums will jump to $1,078 a month from $377.”
What does this mean? For many individuals, the entire COBRA premium, without the subsidy, will prove to be too high while on a reduced budget. So what alternatives are available? An article in USA Today discussed a couple of alternatives, one of which is purchasing short term medical insurance. Traditionally, short term medical policies are used to fill temporary gaps in coverage for individuals in transition between jobs, recent graduates, or new employees waiting for group coverage to begin. Many short term medical policies offer next day coverage and have limited underwriting requirements. Depending on the carrier, coverage may be purchased for periods as short as 30 days and up to 6 months or, in some states, up to 12 months! The ease and flexibility typical of short term medical products can help give you peace-of-mind — perhaps allowing you to better focus on job hunting.
If you are looking for a competitive short term medical policy, check out HCC Life Short Term Medical (STM). HCC Life STM is underwritten and administered by HCC Life Insurance Company, a leading insurance company rated A+ (Superior) by A.M. Best Company. The HCC Life STM policy boasts a wide range of deductible options, as well as a choice of overall policy maximums and coinsurance. The plan also features a unique $50 co-pay option in place of the deductible for visits to an urgent care center. Online fulfillment is also available so you can download and print ID cards and all relevant insurance documents immediately for coverage beginning as soon as the next-day. For a free quote, click here.
Have some peace in knowing that there are options available if COBRA no longer makes sense for you and your budget. Hopefully, with these options you’ll have something to be thankful for this year after all!
Tags: COBRA, COBRA alternative, Short Term Medical
