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Short Term HI plan bridge to exchange plan
Old 09-22-2013, 03:28 PM   #1
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Short Term HI plan bridge to exchange plan

Had lunch with a friend who left work in January and went on COBRA to get to exchange plan in 2014. It seems it's open season now for the group plans and the new rates for the COBRA took a huge jump. I suggested looking into short term HI plan to bridge to the exchange plans in 2014. Looking at the info he gave me and looking on ehealthinsurance, he could get a short term plan for 3 months for 20% of what staying on COBRA would costs.

This seems like a no brainer to dump the COBRA... anyone else looked at something like this, does it make sense and is there something that is being overlooked.
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Old 09-22-2013, 04:03 PM   #2
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look for, exclusions on pre-existing, no guarantee to renew, get seriously sick or hurt, out of luck when it ends.
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Old 09-22-2013, 07:20 PM   #3
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Quote:
Originally Posted by rbmrtn View Post
Had lunch with a friend who left work in January and went on COBRA to get to exchange plan in 2014. It seems it's open season now for the group plans and the new rates for the COBRA took a huge jump. I suggested looking into short term HI plan to bridge to the exchange plans in 2014. Looking at the info he gave me and looking on ehealthinsurance, he could get a short term plan for 3 months for 20% of what staying on COBRA would costs.

This seems like a no brainer to dump the COBRA... anyone else looked at something like this, does it make sense and is there something that is being overlooked.
If he gets in with a company that will renew his policy prior to end of year, he may save even more for another year in relation to premium costs on the exchange. If I had
any health issues I wouldn't do it. I would be scared of rescission. If he proceeds this way, he better give full disclosure of info prior to acceptance. I had no problems doing this but I have a clean slate.
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Old 09-22-2013, 10:15 PM   #4
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Six years ago when I changed jobs, I bought very high-deductible bridge insurance for myself and my family through ehealthinsurance.com . I needed coverage for 90 (180?) days before I was eligible for my new employer's policy.

My entire relationship with the company was writing a premium check in return for peace of mind that we'd have some coverage if a catastrophe occurred. All of us were free of pre-existing conditions. IIRC, none of us filed any claims during the time the policy was in force.

As way-below-average users of the previous company's health insurance, the cost-benefit odds of moving to an individual policy looked to be in my favor.

Note that I knew very clearly what my policy, provider network, premiums and deductibles would look like at the end of the bridge. That's not possible with exchange policies, at least not yet. Perhaps your friend should wait two weeks to make his decision?
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Old 09-23-2013, 08:05 AM   #5
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Thanks for the replies. He has no conditions, takes no meds, only been to a "doc in the box" a few times. Only wants this as a bridge to the exchange plan, has no intention of actually using it, it would be for the unexpected catastrophe. He would be going on the exchange in 2014 anyway so it doesn't seem to make sense to waste money on a COBRA plan that doesn't get used. Even without subsidies the estimates for the exchange are cheaper than COBRA.

I ran across an ad for a company marketing plans for this

Their website https://www.hiiquote.com/
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Old 09-23-2013, 08:19 AM   #6
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If he gets in with a company that will renew his policy prior to end of year, he may save even more for another year in relation to premium costs on the exchange. If I had
any health issues I wouldn't do it. I would be scared of rescission. If he proceeds this way, he better give full disclosure of info prior to acceptance. I had no problems doing this but I have a clean slate.
No more recissions, except in the case of fraud.

Quote:
Originally Posted by rbmrtn View Post
Thanks for the replies. He has no conditions, takes no meds, only been to a "doc in the box" a few times. Only wants this as a bridge to the exchange plan, has no intention of actually using it, it would be for the unexpected catastrophe. He would be going on the exchange in 2014 anyway so it doesn't seem to make sense to waste money on a COBRA plan that doesn't get used. Even without subsidies the estimates for the exchange are cheaper than COBRA.

Their website https://www.hiiquote.com/
That web sire is pretty light on actual content. There are insurers, such as Golden Rule, with bridge and short term policies. Also, the state must have a conversion policy, which might be worth looking into.
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