Temporary Health Insurance, Is It Right For You?

As you start your new business you need to think about your health insurance and its costs.  If you have left an employer that offered you health insurance then you will be offered COBRA.  Typically, COBRA can range between 102%-150% of the cost of the group health insurance.  If you are healthy, the best thing to do is purchase individual health insurance as soon as posible but not temporary insurance.  Temporary health insurance can cover that employment gap when you are going from one employer to another but it has a limited time period 30days to 6 months and a low benefit amount.  Rather, you shoud purchase individual health insurance that will save you thousands of dollars compared to COBRA.  In addition, once you are approved for individual health insurance you can’t get “fired” by the carrier as long as you pay your premiums.  Even if you think your new company is going to offer health insurance a Health Reimburement Arrangement (HRA) would be the best way to take advantage of the lower cost individual health plans while receiving a tax benefit of group insurance.  Also, your premiums can’t increase if you get sick while being insured.  The carrier can only raise your premiums based on the people in your age range, sex and zip code.