Cheaper Than COBRA
Low Cost Medical Insurance

By mutual agreement, my husband will be out of a job in a week or two. When he was laid off previously, the COBRA insurance wreaked havoc on our savings account. This time it will be $400/month. We are very interested in ideas for alternatives to the COBRA insurance. Thanks for your help
Sandy R.

Call around to find medical insurance of your own. I too thought medical insurance always meant big bucks and would be "unaffordable". I found that if you are willing to accept pay a high deductible (i.e., $1,000) and you have no "prior conditions" - you can find fairly inexpensive medical insurance. I called USAA, as my husband was in the military - they quoted a plan for the three of us, husband, wife and toddler with a $1,000 deductible, with a million dollar annual cap, at around $255 per month. Of course this plan doesn't do much for someone who needs medical attention routinely, but it does prevent a financial catastrophe due to a need for surgery, etc. while looking for a new job etc. So, for a short term fix, such a plan could offer some peace of mind.
Kim N.

When I was inbetween jobs about 5 years ago, I got "disaster insurance" from a company called Time Insurance, based in Milwaukee, Wisconsin. (I live in Colorado.) Basically, it covered an accident or a major illness like cancer, but that was about it, and it had a very high deductible. (I think it was $750 or $1000.)

If you and your husband are both healthy, you don't have kids, and you aren't going to need it for very long (I did it for about 3 months), it might be worth investigating. I'd go get any necessary checkups/preventative care before you lose your regular insurance. I never had to use the Time Insurance, so I can't say how good the coverage would have been had something actually happened. But for $40 a month, it was worth the peace of mind it provided during an otherwise stressful period. I have no idea if Time is still around, but there are probably similar companies in your area or available nationwide.
Cindi

This is in response to Sandy R regarding medical insurance. My husband and I are both independent contractors and have been paying about $300 a month toward insurance for the past year. We recently decided to end these outrageous monthly payments through a part-time job (just 20 hours a week) my husband took at UPS. After just six weeks of work you receive excellent full benefits for your entire family. David had the opportunity to choose the shift he wished to work, we are saving $300 a month, plus he makes extra cash. Yes, it has been difficult, but within a year we will save approximately $9,000 (which includes income plus benefits). Many companies are offering full benefits for part-time work instead of increased pay because this option ultimately saves them money. Other avenues to look into include driving a school or city bus or working as a security officer. Both of which can be done on a part-time basis. Good luck!
Robin

To the woman who asked about alternatives to COBRA insurance, I have a suggestion. When my husband got laid off, we bought Blue Cross catastrophic insurance. This does not cover everything that HMO insurance covers; it just covers the big expenses, like when you have to go to the hospital. It cost us $79/month for all five of us (2 adults, 3 kids). This was in 1990, so the rate might have gone up a little bit, but is it sure to be cheaper than $400/month. You can go back to the HMO-type insurance when your husband finds another job, and the cost to you is not so high.
Donna J.

This is to the lady who was concerned about the cost of the COBRA coverage when her husband left work. I don't know what part of the country she is from, but many companies now offer pretty reasonable coverage to the average person off the street. When I left a position with an HMO type company (that wasn't that great of a health care bargain while I was working there!) it was actually more for me to continue coverage with them, then to quit that plan and buy my own through them. I'm in Oregon and there are several plans here that provide decent coverage for about $65/month. Again, I don't know if you have pre-existing conditions or anything, but it is definitely worth making a phone call or two to the major providers to see if they have coverage for the average Joe Blow. (Kaiser Permanente and Pacific were two here and I think for two people it was around $150/month). Hope that works out for you!
Heather R.

Depending on where you live (we live in Arkansas) the state offers a program for kids under age 18 who have no health insurance. Check with your local health department to see what is available. I have found these people to be most helpful.
David D.

If there are no pre-existing conditions to worry about...I would suggest checking into short-term insurance. The premium is extremely reasonable & the policy is written to cover the insured for a specified period of time. Again, pre-existing conditions would not be covered under this type of plan...but for all others, short term policies make great financial sense. Hope this helps.
Lisa T

I say forget COBRA! Try looking into paying for health insurance on your own through value plans with HMOs such as Intergroup, Health Partners or any others in your area. You employer doesn't always get the best deals and you having to fork out 102% is ridiculous.
TP

The reader concerned about insurance costs for cobra needs to go to an independant agent and have that person check around. another option may be there if she or her spouse holds membership in any professional organization---groups as diverse as the National Association of Social Workers and the Horror Writers Association offer medical insurance options.
D. G.

I'm not exactly sure if every state in the US has this, but a friend of mine was able to obtain excellent health insurance through the state of Washington at a fraction of the cost for "regular" insurance or Cobra for that matter.
Dana K.

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