We Know: All about Temporary Health Insurance What is temporary health insurance? Temporary health insurance is insurance you would secure after the loss of a job or gap in employment. They are: COBRA Individual coverage Interim or short-term policy for people Group coverage through an association high-risk pool What is COBRA? The Consolidated Omnibus Budget Reconciliation Act of 1985, requires employers with 20 or more employees to offer continued coverage for you and your dependents for 18 months after you leave your job. If you wish to continue your group coverage under this option, you must notify your employer within 60 days. You must also pay the entire premium, up to 102 percent of the cost of the coverage. When would a person need individual coverage? If COBRA does not apply in your case, perhaps because you work for an employer with fewer than 20 employees, you may be able to convert your group policy to individual coverage. The advantage is that you may not have to pass a medical exam, although an exclusion based on a preexisting condition may apply, depending on your medical history and your insurance history. When should I consider an interim or short-term policy? Interim policies provide medical insurance for people with a short-term need, such as those temporarily between jobs or making the transition between college and a job. These policies, typically written for two to six months and renewable once, cover hospitalization, intensive care, and surgical and doctor's care provided in the hospital, as well as expenses for related services performed outside the hospital, such as X-rays or laboratory tests. You might consider interim or short term policy if: COBRA does not apply Group coverage is not for you You are healthy Not yet eligible for Medicare Expect to take another job How do I get a group policy through an association? Another possibility is obtaining coverage through an association. Many trade and professional associations offer their members health coverage - often HMOs - as well as basic hospital-surgical policies and disability and long-term care insurance. If you are self-employed, and belong to any professional associations, you may find this option attractive When would I need to use a purchasing pool or high-risk pool? This most expensive option may be necessary if you are medically uninsurable (preexisting health problems).
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