How Does Temporary Medical Health Insurance Coverage Work?

By Cathy Wilson Posted in Health Insurance News

What Is Temporary Health Insurance

Temporary health insurance, also known as short term health insurance,  is a type of medical insurance used to cover the gap between traditional health insurance policies. If you are between jobs or were recently laid off work, temporary medical health insurance will offer medical coverage until you find employment or are able to purchase traditional health insurance. This type of policy can be purchased through most major health insurance providers.

Why Is It Important

If you lose your job or experience a gap in medical coverage between jobs you may find your health insurance premiums will increase dramatically or the insurance companies will not cover your pre-existing conditions. All insurance companies ask if you have had a gap in coverage and why, before they will allow you to purchase insurance from them. This is because they are assuming a risk to insure you if you have been without medical insurance for any length of time.

Insurance companies make it incredibly difficult to qualify for health insurance if you have had a significant gap in health coverage. They may require you to have a complete medical exam and then only offer you health coverage at a much higher premium.

Types Of Temporary Medical Health Insurance

The most widely used temporary health insurance coverage is COBRA. COBRA, Consolidated Omnibus Budget Reconciliation Act, was established in 1985 and offers employees who have been laid off or quit their job health insurance coverage until they are able to get a traditional insurance policy. An employer must offer COBRA to all employees who have been laid off or leave their job, they are not required to offer it to them if they are terminated for any reason. The COBRA plan allows an employee to continue their insurance plan at a significant increase in premiums. Those using COBRA typically pay up to 65% of the premium of the COBRA plan. COBRA is only offered for up to 18 months in most cases and as much as 36 months in the case of divorce.

Related posts:

  1. What Happens To Your Health Insurance If You Get Laid Off?
  2. I Had Health Insurance From My Employer And Left My Job, What Happens?
  3. How Do Unemployed People Find Health Insurance?
  4. What Are Employer Obligations When Offering Health Insurance?
  5. What Does COBRA Insurance Mean?

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