COBRA alternative insurance is available in a temporary health plan. COBRA coverage is a continuation of the group plan coverage. This includes all health problems that are currently covered under the group policy. A temporary health plan will not cover to the extent of COBRA. It will cover out-patient and in-patient surgeries. It is designed to cover the high cost of hospitalization for injury or illness.

The premiums are much lower on COBRA alternative insurance than on a COBRA policy. When a COBRA policy is chosen, the insured pays the entire cost of the monthly premium plus an administrative fee. This can be a huge payment when you consider paying both the employee and employer portion of the premium. The high cost prohibits many individuals from continuing coverage.

COBRA Alternative Insurance Costs Less

COBRA alternative insurance premiums are lower simply because the policy covers much less than a group or COBRA policy. There is no coverage for doctor visits. Some policies offer an option to add prescription drug coverage. A wide range of deductibles exists from $250 to as much as $5,000. The higher the deductible, the lower the premium will be. This is a great option if everyone on the policy is in good health.

There is no maternity coverage and pre-existing conditions are not covered by a temporary health insurance policy. This type of policy is great for people in transition between jobs or for new employees waiting for company benefits to begin. In order to qualify, you must be under the age of 64 years and 11 months. Once you qualify for Medicare, you can no longer obtain a temporary policy.