Health insurance can be an expensive purchase for your family’s budget. But if you know some of the rules, you might be able to get the coverage at a fraction of the cost that you think. Most people get their insurance through their employer. When you are hired you generally have a 3 month wait before benefits start. If you are healthy you might not need insurance. But why risk going without insurance when you can get a very affordable short term health insurance plan to cover you until your medical insurance starts?
Every new policy will have a waiting period for pre-existing conditions. If you do not have any pre-existing conditions this will not matter. However if you go for more than 63 days without coverage for the 12 months before gaining insurance you will suffer a waiting period for pre-existing conditions. Here again you can avoid the penalty by getting an affordable short term health insurance policy if you ever find yourself without coverage for a month or two. You may not use the coverage, but they will issue a certificate of creditable coverage which is used for proof that you have had continuous coverage. This proof will keep you from having a waiting period for pre-existing conditions.
COBRA is the program generally offered to people who have just quit or been fired. This program allows individuals and families to maintain the coverage that they had while they were employed. The problem is that the person between jobs will be required to pay for the entire amount of the premium rather than the employer paying. This can be unaffordable. For people who have health problems that incur substantial health care costs it could still be the best deal. You will have 18 months to maintain this coverage at this rate to find a new job with benefits. However if you are healthy you will generally waste most of the money that you pay for the COBRA benefits. Many people turn to the short term health insurance plans to maintain coverage while they are between jobs. Most people between jobs can not afford the 500 – 1500 dollars each month just for medical benefits. These plans are great when they are offered by an employer. But when you have to decide where your money goes, you might not want to spend it on such elaborate benefits.
In summary, if you know the rules of the health insurance plans you can save a lot of money. There are affordable plans for everyone. Short term health insurance plans comply with all the states’ departments of insurances and are full major medical plans in the event of a hospitalization or surgery. Consider if these programs fit your needs so you can save money