| A major benefit of being a fulltime employee at an | | | | enter the workforce, spouses waiting for coverage |
| American corporation is the security of health | | | | from a wife or husband, young adults who are coming |
| coverage. Medical costs along with the cost of health | | | | off parents' health plans as a dependent, employees |
| insurance have skyrocketed in the past 60 years. | | | | who are now working part time or as temporary |
| Under these circumstances, insurance coverage | | | | workers, and other people who are waiting for |
| provided by employers, who enjoy tax benefits for | | | | permanent health insurance to commence. |
| giving health benefits to their workers, has helped | | | | While the affordable prices are attractive, it's important |
| foster loyalty and reduced the financial stress of | | | | to remember that temporary low-cost health insurance |
| thousands of American employees, many of whom | | | | is considered a "stop gap" for individuals who are |
| would not be able to afford health insurance if | | | | between jobs that normally provide complete |
| purchased privately. | | | | healthcare benefits. These policies are not designed as |
| Just how expensive those skyrocketing insurance | | | | a long-term solution. |
| costs really are becomes painfully obvious when | | | | Who Qualifies? Everyone who is young and healthy |
| someone loses a job. The Consolidated Omnibus | | | | probably qualifies for temporary low-cost health |
| Budget Reconciliation Act of 1985 (COBRA), requires | | | | insurance. Those that likely may not qualify include |
| insurance companies to continue to make their plans | | | | someone who has a pre-existing condition, is over the |
| available to former employees who have left a group | | | | age of 65, or who has been rejected for insurance |
| policy due to unemployment. However, when you sign | | | | before. Pre-existing conditions are generally defined as |
| up for COBRA, you suddenly find yourself paying | | | | any condition or symptom which you had during the |
| much more for your health coverage than what you | | | | 3-year period prior to the start of coverage. |
| were paying at the time you were employed. The | | | | Generally, the holder of a temporary low-cost health |
| financial burden can be unbearable, as at the same | | | | insurance policy should plan on having the policy a year |
| time you have probably lost your primary source of | | | | or less. Some policies do last 2 years, and rarely last |
| income. The national average cost per family for | | | | for 3 years or longer. Many policies allow people to |
| COBRA is in excess of $500 a month. For a relatively | | | | renew after the policy has run its course, but usually |
| healthy person who rarely visits a doctor, the cost of | | | | customers are limited to renewing a policy only once. |
| COBRA may seem unacceptably high. | | | | Temporary low-cost health insurance policies apply on |
| However, thousands of people who have opted not to | | | | a per-illness or per-injury basis. You will likely be |
| continue with their health insurance because of its | | | | required to pay a deductible, with your insurance |
| costs have come to regret the choice. In fact, every | | | | company paying some portion of the next $5,000 in |
| 30 seconds someone in the United States files for | | | | healthcare expenses, before 100 percent coverage |
| bankruptcy following a major medical emergency. The | | | | takes effect. Plan maximums are typically $1 million to |
| vast majority found themselves seriously sick or | | | | $2 million. Healthcare expenses ranging from |
| injured without health insurance coverage. Fortunately, | | | | emergency services to surgery, prescription drugs to |
| an inexpensive alternative to COBRA exists that can | | | | hospital care are typically covered by the policies. |
| fill in the gaps between jobs. Temporary low-cost | | | | If you do have a pre-existing condition, it's unlikely you |
| health insurance typically has a much higher deductible | | | | will qualify for temporary health insurance. But it's still |
| than COBRA, but also very affordable rates. It's | | | | too financially risky to function without some kind of |
| possible to receive coverage in a matter of days, if | | | | insurance coverage. Your best option may be to apply |
| not hours. | | | | for a low-income health insurance plan. Medicare, a |
| Who generally purchases short-term temporary health | | | | health insurance program of the federal government, |
| insurance? The list includes people who have left a | | | | covers senior citizens aged 65 and over, as well as |
| company for another job or were laid off, students wh | | | | the disabled of any age. Medicaid is usually available |
| are about to graduate from college and need a plan to | | | | for pregnant women, depending on a woman's income |
| cover them after they leave school and before the | | | | and family size. |