COBRA health insurance program is designed for those employees who have lost their jobs for some reason. They can still avail health insurance benefits from their employer’s existing group insurance plan. However, they need to pay a premium on their own as they become ineligible employees for coverage they might lay off, or their working hours are reduced.
Some employees can’t afford the expensive premium of this program; therefore, they are searching for the best Cobra Insurance Alternatives. In case you are wondering about the same thing, then it’s time to know about three alternatives that are less expensive and bring health coverage in case of unemployment.
Spouse Health Insurance Plan
When you lose a job, you can enjoy group insurance benefits. Buying your individual health insurance plan means paying a high-cost upfront. You can avoid this quickly by enrolling for a spouse health insurance plan. This program can be short-term or long-term. The coverage you get from this plan will not be the same as you get from your employer’s health insurance program, in most cases.
Short-Term Insurance
You can subscribe to a short-time plan when you know that this unemployment period is temporary. This option is quick and less expensive. However, it will work only for three months. Once that period is over, you will have to apply for another plan. Another issue with short term insurance programs is that it offers limited coverage and often requires high deductibles.
If you have pre-existing medical conditions, you might not get its coverage from a short-term insurance program. It’s also possible that the insurance company rejects your application based on your medical history.
Long-term health insurance
When you know that your unemployment is not temporary, you should consider getting a long-term health insurance program. This kind of insurance is also known as special enrollment insurance. When you lose a job and get qualified for COBRA health insurance, then you get sixty days to decide whether to get the same coverage or not. This period is special enrollment where you have the right to get another insurance plan other than COBRA from the market.
The problem with long-term insurance is that it would be quite different from your existing health coverage. You can’t go to the same physician for a particular treatment.
Finally, you have got complete details of the three best COBRA insurance alternatives. You need to pay a low premium with these options. After evaluating their pros and cons, you can pick one alternative that meets your health coverage requirements.