COBRA or short term medical?
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q: My daughter will be leaving her job in mid-December and has the choice of continuing with her current plan under COBRA or signing up for a short-term policy that would last through July, when she will be covered by her husband's policy. She is currently taking medication for high blood pressure. What do you advise?
A: High blood pressure alone is not a medical condition that normally causes a person to elect COBRA coverage. The cost of treatment (usually one relatively inexpensive prescription medication) is much less than the cost differential between short term medical insurance and COBRA. It makes sense to pay for the medication in cash and take the much less expensive insurance. Consider that some short term medical insurance like Secure STM at http://FreedomBenefits.net, comes with a discount prescription drug card that further reduces the out-of-pocket cost.
Summary
More resources:
Secure STM