| A major attraction of being a fulltime employee at an | | | | husband d)Who are coming off parents health plans |
| American company is the security of health coverage. | | | | as a dependent e)Who are now working part time or |
| As the cost of health insurance has skyrocketed in the | | | | as temporary workers f)Who are waiting for |
| past 60 years, insurance coverage provided by | | | | permanent health insurance to begin |
| employers who enjoy tax benefits for giving health | | | | Who Qualifies? |
| benefits to their workers has helped foster loyalty and | | | | If you're healthy, you likely qualify for temporary |
| reduced the stress of thousands of American | | | | low-cost health insurance. You probably don't qualify if |
| employees. | | | | you are someone who has a pre-existing condition, is |
| Just how high those skyrocketing insurance costs | | | | over the age of 65 or who has been rejected for |
| really are becomes painfully apparent when someone | | | | insurance before. Pre-existing conditions are generally |
| loses a job. COBRA, which stands for the | | | | defined as any condition or symptom which you had |
| Consolidated Omnibus Budget Reconciliation Act of | | | | during the 36-month period prior to the start of |
| 1985, requires insurance companies to continue to | | | | coverage. |
| make their plans available to people who have left a | | | | How They Work |
| group policy due to unemployment. But when you sign | | | | Many temporary low-cost health insurance policies |
| up for COBRA, you suddenly find yourself paying | | | | apply on a per-illness or per-injury basis. You will likely |
| much more than what you were paying at the time | | | | be required to pay a deductible, with your insurance |
| you were employed. This is at the same time that you | | | | company paying some portion of the next $5,000 in |
| have probably lost your primary source of income. The | | | | healthcare expenses, before 100 percent coverage |
| national average cost per family for COBRA is more | | | | takes effect. Plan maximums are typically $1 million to |
| than $500 a month, the price of rent in many cities. For | | | | $2 million. Healthcare expenses ranging from |
| a relatively healthy person who rarely visits a doctor, | | | | emergency services to prescription drugs to surgeries |
| the cost of COBRA may seem unacceptably high. | | | | to hospital care are typically covered by the policies. |
| Hindsight is 20/20, however, and thousands of people | | | | How Long They Last |
| who have opted not to have insurance because of its | | | | Generally, the holder of a temporary low-cost health |
| costs have lived to regret it. In fact, every 30 seconds | | | | insurance policy should plan on having the policy a year |
| someone in the United States files for bankruptcy | | | | or less. Some policies do last up to 36 months. Many |
| following a major medical emergency. Many of them | | | | policies allow people to renew after the policy has run |
| found themselves sick or injured without insurance. | | | | its course, but usually customers are limited to |
| Fortunately, an inexpensive alternative to COBRA | | | | renewing a policy only once. |
| exists that can fill in the gaps between jobs. | | | | If You Don't Qualify |
| Temporary low-cost health insurance typically has a | | | | If you do have a pre-existing condition, it's unlikely you |
| much higher deductible than COBRA, but also very | | | | will qualify for short-term low-cost health insurance. But |
| affordable rates. It's possible to receive coverage in a | | | | it's still too dangerous to function without some kind of |
| matter of days, if not hours. | | | | insurance. Your best bet may be to apply for a |
| While the affordable prices are attractive, it's important | | | | low-income health insurance plan. However, only |
| to remember that temporary low-cost health insurance | | | | certain groups qualify:Seniors 65 and older: Medicare, a |
| is considered a "stop gap" for individuals who are | | | | health insurance program of the federal government, |
| between jobs that normally provide healthcare | | | | covers this group. Pregnant women: Medicaid is usually |
| benefits. These policies have not been designed as a | | | | available, depending on a woman's income and family |
| long-term solution. | | | | size.Young adults under 19 and children: The United |
| Who generally purchases short-term temporary health | | | | States typically does not allow children to go uninsured. |
| insurance? Purchasers include people a)Who have left | | | | Programs including dental, vision, substance abuse |
| a company for another job or were laid off b)Are | | | | counseling and basic medical coverage are available |
| about to graduate from college and need a plan to | | | | across the U.S.The disabled: Medicare covers this |
| cover them after they leave the Ivory Tower c)Who | | | | group. |
| are spouses waiting for coverage from a wife or | | | | |