Many people make the mistake of thinking they can skip health insurance for a few months until landing another position. Unfortunately, it often makes a bad situation worse. Accidents, illness and other emergencies tend to crop up when you least expect them. Fortunately, short-term health insurance options are available if you know where to look. Basically what you would end up looking for is what was used to be called a form of Major Medical insurance.
Compare Individual Coverage with COBRA: If you had health insurance through your employer, chances are you qualify for COBRA coverage… keep in mind that you have about 60 days to decide from date of separation if you decide you need it. However, many people are surprised to find short-term health insurance for individuals to be more cost effective than COBRA, especially if they are in relatively good health without major pre-existing conditions. Don’t delay. Put in a call to your agent right away to determine the most cost-effective policy for your needs.
Select a Term: Short-term health insurance is typically sold in one-, three- and six-month increments , but there may be a limit on how many times you can renew the policy. It’s often a good idea to purchase for a longer period of time just to be on the safe side. You can always cancel the remainder of the policy if desired.
HSA: Depending upon your situation, it may also benefit you to consider a HSA, or Health Savings Account policy. Although not specifically short-term health insurance, these high-deductible policies are often quite affordable. They tend to benefit those in relatively good health who are able to afford the large out-of-pocket deductibles, as well as those with chronic health conditions who would normally experience large annual co-payments.
Additional Coverage: Don’t neglect add-on coverage just because you are in between jobs. In fact, it might be more important than ever to make sure that you are covered against accidents or have available vision, dental and prescription drug benefits to rely upon.