Deciphering between health insurance plans isn’t easy. However, we’re here to make your decision a little less complicated, especially if you’re stuck on COBRA vs. short-term health insurance. First, you should understand some critical differences between COBRA and short-term health plans (hint: they are quite different). So, we created a handy guide to help you decide whether an affordable short-term health insurance plan or COBRA is more beneficial for your lifestyle and budget. Let’s dive in!

What Is Short-Term Health Insurance?

To start, you should know what short-term health insurance means. In past years, it was thought of as gap coverage to help you stay protected from unexpected medical emergencies while in-between jobs. Now, short-term health insurance durations are longer. Through Vera Health, you can keep your temporary health plan for up to one year with the option to renew coverage up to two additional times. Also, a temporary health insurance plan through Vera can be applied for at any time with coverage starting as soon as the following day.

What Is COBRA?

COBRA, or the Consolidated Omnibus Budget Reconciliation Act, is a law that helps employees keep their company-provided health insurance if they involuntarily leave. COBRA is also available for those experiencing a reduction in work hours or people between jobs. If your company has at least 20 employees, including full-time and part-time workers, then COBRA could be an available option for you. If someone elects COBRA, they will keep the group health coverage they had with their former employer, but they pay the employer for the full cost of that coverage.

side by side comparison infographic detailing cobra vs. short-term health insurance

We hope you feel more confident in your COBRA vs. short-term health insurance research. If a short-term health through Vera piques your interest, give us a call at 888-499-1187, or visit us online to find out how you can buy short-term health insurance today! We’d love to answer any of your questions and discuss your coverage options. Whether you’re between jobs, self-employed, looking to spend less on health insurance, or don’t receive health insurance from an employer, short-term health insurance could be for you!

[1] COBRA policyholders pay up to 102%-150% of their group health insurance plan’s total cost.
2 COBRA insurance provides coverage for up to 18-36 months or longer depending on circumstances
3 Short-term health insurance through Vera Health is available for up to one year with the option to renew coverage up to two additional times.

This coverage is not required to comply with federal market requirements for health insurance, principally those contained in the Affordable Care Act. Be sure to check your policy carefully to make sure you are aware of any exclusions or limitations regarding coverage of preexisting conditions or health benefits (such as hospitalization, emergency services, maternity care, preventive care, prescription drugs, and mental health and substance use disorder services). If this coverage expires or you lose eligibility for this coverage, you might have to wait until an open enrollment period to get other health insurance coverage.

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Vera Health markets short term medical insurance products underwritten by National Health Insurance Company, Integon Indemnity Corporation, and Integon National Insurance Company.

Vera Health markets short term medical insurance products underwritten by National Health Insurance Company, Integon Indemnity Corporation, and Integon National Insurance Company.