What to do while waiting for Health Insurance?

Trauma Columnist · Aug 1, 2006

I've done it before for up to six months. One of my sons doesn't have health insurance and the other one did without for 3 years! It isn't easy - you just cross your fingers. Stock up on any meds you take.

Ezekiel2029 · Aug 1, 2006

I've used Assurant Health for short term solutions. You can purchase as short as a 30 day policy and I think up to 12 months. You can choose your deductible and payment percentage, both of which will affect the price quote. Price quotes are quick and easy to change around. I've been fortunate not to need to file a claim, but I wasn't willing to take the risk and just keep my fingers crossed. Hope this link works.

http://www.temporaryinsurance.com

ruthiebaby88 · Aug 4, 2006

some other companies you can try for short term insurance are celtic and fortis

the only problem with short term is that the coverage ends on the date you select regardless of whether you have come down with some major medical problem in the interim - then of course it's harder to get onto another policy

so you could also get a permanent major medical policy which is a little more expensive, then just cancel it when your new policy comes effective

HarryHK · Aug 4, 2006

What do you guys do for Health Insurace. Some travel companies have a 30day wait for insurance to kick in. What do I do? Risk it? I personally think it is absolutly crazy to travel hundreds of miles, then move your stuff without health insurance.
Thanks,
Ant

Why not COBRA the insurance that you have? You can do that up to 18 months.

dpipes44 · Aug 4, 2006

I thougth COBRA was very expensive.

HarryHK · Aug 4, 2006

Doesn't matter. While it is typically $300 to $400, it can run upwards of $700. There is no free lunch, you are paying this either way (coming out of what your former employer pays you in hourly). And if you choose to COBRA, your new agency should be able to give you a similar stipend. Zero sum game. And you have to balance any cost with the potential cost of being without insurance for a major incident.

Now there is a free lunch with COBRA for travelers when it comes to just making sure you are covered between agencies that you can take advantage of. From an article I wrote for the Traveler's Association:

If your agency is covered by COBRA regulations (those with less than 20 employees are not), this is your best option (unless you have private insurance). And you can be covered for a long period of time without having to pay, more than enough to take some time off before starting your next assignment. This is very beneficial for the traveler but not the insurance company. It was designed by Congress to protect permanent employees when they lose their jobs, and as such, it is a huge loophole that works to travelers’ advantage. Here is how it works:

When your contract ends, your agency is required to send you a letter explaining your COBRA rights. You then have 60 days from the end of your contract (or 60 days from the letter’s date) to positively select COBRA coverage. (Be sure to check with your agency if you haven’t seen this letter in good time). After you elect coverage (no reason not to), you have 45 days to pay the premium. This gives you an effective minimum of 105 days (three and a half months) of insurance coverage without paying a cent.

So what does this mean? It means that you are covered by your agency’s insurance for well over three months after the contract ends if you select COBRA coverage at the last moment. And there are no consequences from not paying the premium three months later other than your insurance coverage will be cancelled retroactively back to when your contract ended. If you had no events during this period that required insurance, you have just received a free ride! And if any events do occur, they would have to add up to more than $1,000 (your minimum likely premium during this period) to be worth paying the premium. This is an insurance company nightmare – clients fully covered but electing to pay only if the insurance benefits are more than the cost of premiums.

There is one possible glitch - you want to ensure this strategy works in the worst possible scenario. If you are incapacitated (think unconscious or major trauma) during this period, you may not be able to make the COBRA election or pay the premium. So you should give clear instructions to a family member on what to do just in case with the appropriate forms. Otherwise, your medical bills will not be covered and that would be a real catastrophe!

If COBRA doesn’t work for you for any reason, short term insurance is available at a lower cost than COBRA. Generally available for preexisting conditions as well, but is short term and may exclude certain things. Short term may also be a good option for a traveler who is only doing one or two assignments before returning to a staff position.