Short term medical insurance under the new economic recovery law
Associated Press says short term health insurance will be more affordable under the Economic Recovery plan. But all of the other press coverage has focused on COBRA coverage. It is clear that COBRA coverage will be subsidized, but we have no detail on how the less expensive and more popular short term medical insurance will be handled under the new law. This Blog is likely to cover the issue in future posts as the details emerge.
Assuming all types of gap insurance are subsidized under the new law, unemployed people could see the net cost of COBRA coverage drop to an average of about $175 per month for individuals and under $400 for families. Short term coverage would drop to under $100 for individuals and under $200 for families, according to a spokesman for MedSave.com.
Some are skeptical that this will greatly affect the number of people without insurance; a significant number of unemployed people will not voluntarily buy health insurance at any price.Tags : cobra, short term health insurance, economic recovery