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Sunday, February 20, 2011

Why Insurance Companies Don't Want You To Buy Temporary Health Plans

Insurance companies determine the cost of plans by the amount of benefits in the plan. Most plans provided by an employer have very good benefits. Those good benefits are great when the boss pays for the monthly premium. But when you change jobs or lose your job, you are required to pay for the entire monthly premium on your own. These programs are known as COBRA plans because it must be available by law of the same name. This law is in place so that you don't lose your benefits if you have a chronic illness between jobs.

For example, if someone had diabetes, it might be difficult to get an affordable plan that would cover it. The COBRA benefits would help them pay to maintain their diabetes while they searched for another job that provided benefits. But most people who are healthy don't need all the expensive plans. They really only need major medical coverage in case they get hospitalized or have a major surgery. For healthy Americans paying for their own insurance for a few months, temporary health insurance plans are the most affordable option.

Because these plans are popular and affordable, the insurance companies themselves don't do a very good job letting people know about them. They would rather people think that their only choice is the expensive COBRA plans. The insurance companies spend their time and make their money on large companies with hundreds of employees. Those plans are tax free and benefit rich. When the company pays it is generally a more expensive plan. That is what the insurance companies want.

They will not let you know that you can get a less expensive plan if you were willing to pay for their better plan. Insurance is basically a math game. The more benefits you get, the more expensive it is. If you only need catastrophic coverage for a few months you might not need prescription drug coverage or doctor copayments. Since nobody ever knows when the next medical emergency might happen, you can't go without coverage. Temporary health insurance plans are the secret insurance plans that insurance companies would rather you not know about. See if you qualify to save money in minutes online at various websites.

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