Temporary Medical Insurance

Sometimes people find themselves between jobs, or divorced from a spouse whose job provided medical benefits, which necessitates finding some Temporary Medical Insurance.

To help these people keep medical coverage a law called the Consolidated Omnibus Budget Reconciliation Act, abbreviated as COBRA, gives workers and families who lose health benefits the right to continue their group health benefits for temporary periods of time as long as they pay the entire premium.

In many employment scenarios, the employer pays all or part of the cost of the monthly medical insurance premium as a job benefit. These days, only rarely do employers pay the entire premium. Usually the cost of the premium is split between the employer and employee in some manner.

COBRA applies to employers that have had 20 or more employees in the year prior to the request for continuation benefits.

But COBRA benefits are not always the best way to cover gaps in insurance coverage. The main problem is, COBRA benefits are too expensive for most people to comfortably afford. In these cases, some people choose to purchase temporary or short term medical insurance. Situations in which people choose to purchase Temporary Medical Insurance include the following:

Changing to a new job, and being subject to the new job’s probationary period before being eligible for the new employer’s medical policy.

Graduating from college and needing coverage for the time between the end of student health benefits and the beginning of a new employer’s medical insurance eligibility.

Taking a new job when you don’t have health insurance at all and having to wait until the new employer’s probationary period is over to be eligible for their medical plan.

Fortunately, the process of obtaining temporary medical coverage for a period of time ranging from one to 12 months is a quick one, usually only requiring a day or two. Qualifying for temporary coverage is not as difficult as qualifying for permanent health coverage.

Usually it is only a matter of answering a few questions on a form. The only time Temporary Medical Insurance companies balk is when a potential customer answers “Yes” to the question of whether he or she has ever been denied health insurance coverage due to a pre-existing health condition.

Unfortunately, people in that situation are often unable to obtain medical insurance coverage at any price. Some states, however, have “safety net” plans for what are called “medically needy” people, so that they can at least receive some help in paying for healthcare. However, the process for being accepted into such a program can be complicated and lengthy.

Perhaps the biggest risk a person takes when buying Temporary Medical Insurance is having coverage that any new employer would not consider to be “creditable.” This means that if you are treated for a condition under a temporary policy, a new permanent policy offered through employment can deny coverage for that particular medical condition for up to six months if you have not been covered by a creditable health insurance plan for at least 60 days.

Temporary Medical Insurance is not considered “creditable.” This risk may make it worthwhile for some people to try and afford COBRA benefits if possible, because COBRA coverage is considered “creditable.”

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