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December 5, 2008, Newsletter Issue #157: Coverage Between Jobs
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Tip of the Week
Short-term health insurance, sometimes called temporary health insurance, is perfect for different situations. Acquiring short-term health insurance plans is a great idea for people going through a brief gap in standard health insurance coverage, short-term health insurance is ideal if you are between jobs, a recent graduate, or waiting for a for a new health insurance plan to start. However, before you pay for a short-term insurance policy, make sure you understand your rights under COBRA law. If you have left your job and your employer has at least twenty employees, you are legally entitled to continue your coverage under your employer's group plan for up to eighteen months. You will have to pay the entire premium out of your own pocket, but if you have a significant pre-existing condition that you expect to require care for, you may end up better off financially staying on your employer's plan than risking denial of benefits under a new short-term insurance plan.
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