Replacing Your Health Insurance Coverage

Leaving A Job Means Needing New Health Insurance.

Frank is an industrial engineer with a local firm and has more than 20 years experience and 6 years at his present employer. He has a wife who works part-time and a teenage daughter.


His company was recently purchased by an international firm and everyone knew there would be cost-cutting measures. Frank was one who did get cut and what he knew was also going to happen was the loss of his health insurance. Frank made a decision to not look for new employment. Instead, he decided to go into business for himself as a consultant. He also knew he had to evaluate self-employed health plan options.

Frank didn't have any major health issues. He did go to a doctor for routine exams every year and he had hypertension which had been treated and was under control. Even with Frank, his wife, and daughter all being in above average health, he feared his options would all be expensive and have high deductibles.

So what are his options?

COBRA - this stands for the Consolidated Omnibus Budget Reconciliation Act. This is an option because it allows Frank to continue his employer's health insurance coverage as long as he pays the premium. Normally, COBRA coverage can be extended for 18 months.

The advantages are the continued coverage for Frank and his wife and daughter. They can also use the same doctors and care facilities as before and this option will save on out-of-pocket costs.

The disadvantages are high premiums and Frank's plan would change if his former employer's plan changes. He also has only 60 days to accept or decline this coverage option.

ACA Obamacare Marketplace Health Plans - this would be available to Frank even outside the annual open enrollment period since his termination qualifies him for a special enrollment period. Even though pre-existing conditions are covered, Frank will face large deductibles, high premiums, and his estimated income may not qualify him for assistance.

Nevertheless, there are Marketplace plan options Frank can research.

Short-Term Medical - Short-term health insurance may be the perfect solution if you have a gap between health insurance policies, such as when you are changing jobs.

The downside is covering pre-existing conditions is not required of these plans like Obamacare plans. The upside is it's quick and easy to apply for coverage and premiums are going to be much less than his other alternatives. 

Frank has much more flexibility with a short-term medical plan: he can get coverage for as short as one month or as long as 3 years. He can also add accident insurance and critical illness insurance which would cover deductibles and reduce out-of-pocket costs.

Short-term health insurance can provide a low cost, short-term option to help you fill in the gaps you have health insurance coverage and can help you avoid having to pay for medical bills with no health insurance.

Frank found all the information he needed about plan coverage and limitations when he visited a site and spoke to a licensed independent agent.

Frank is doing very well as an independent consultant. He found the health insurance coverage for himself, his wife and daughter that gives all of them peace of mind.