COBRA vs. Short Term Medical Insurance Assurant Health is the brand name used for products underwritten and issued by Time Insurance Company. When you need temporary insurance due to unemployment, you have gap coverage options. In 1985, the United States Congress passed legislation that created what we know today as COBRA coverage. While the actual provisions of the law are complicated, in essence COBRA requires that employers allow employees to briefly extend their health insurance benefits after events that would previously have ended coverage. These circumstances include: Unemployment Health Insurance Individual Health Insurance Plan for marriage of a dependent Temporary Medical Insurance for individuals in between jobs Temporary Health Insurance while waiting for coverage at new employer For healthy individuals, Short Term insurance may offer more cost-effective temporary health insurance coverage than COBRA. As you decide whether to choose employer-offered COBRA coverage or an alternative, short term medical insurance policy, here are some things to consider. Quick Reference: Short-Term Medical Insurance vs. COBRA   Short Term Medical COBRA Insurance * Type of Coverage Major medical coverage, including inpatient and outpatient care All previous benefits Significant Exclusions Pre-existing conditions Wellness benefits All previous exclusions Preexisting Condition Coverage Pre-existing conditions excluded Treatment for preexisting condition covered only if elimination period, if any, met. Choice of hospitals, doctors Free to choose any doctor or hospital If previous coverage was PPO or HMO, choice may be limited to in-network providers Price Up to 70% less expensive than COBRA coverage, depending on insured’s age and state of residence Up to 102% of total price of employer’s plan (including former “employer’s contribution,” which can be up to 70-80% of the total premium) * These are common provisions. Check your current COBRA insurance plan to confirm its terms and conditions. For most healthy individuals who are looking to insure against a catastrophic “What If,” a COBRA alternative such as short term health insurance is usually an excellent choice. However, if a previously covered individual needs (or will soon need) care for an existing medical condition, COBRA may be the best option. Temporary medical insurance may be a more affordable health insurance option than COBRA. The cost savings can make the difference between the risk of going without coverage and having quality health protection. With this insurance coverage, you choose the plan that best meets your needs and budget from a choice of deductibles, co-payment options and length of coverage. It's important to note that Short Term Medical insurance is intended to cover you in the case of an unexpected illness or injury and does not cover pre-existing medical conditions. Find detailed information on available and covered medical services under Short Term Medical Insurance. This will open the door to a secure site that contains specific information on temporary health insurance products available in your area.