Amy's employer just eliminated her job. Amy is looking for work but doesn’t know when she’ll find a permanent position. At 28, she is healthy but needs insurance until she can join a new employer’s plan.

Amy’s options include continuing her former employer’s insurance through COBRA, applying for Short Term Medical, applying for an Individual Medical plan or going without the protection of health insurance.

If Amy chooses COBRA, she must enroll in whatever plan(s) her former employer offers. She is eligible for up to 18 months of COBRA coverage, but without her employer contributing, it will cost her $401.88* a month. With the current government subsidy, she’d pay $140.66* a month for nine months, then $401.88* a month for the next nine months of eligibility. After those 18 months, COBRA would no longer be an option.

Since Amy is in good health, Short Term Medical or Individual Medical insurance will likely save her money. As with COBRA, she can stop paying when she finds a job offering insurance.

For $37.62** a month, Short Term Medical would cover Amy’s insurance gap. It’s a good option if Amy thinks she’ll get a job with benefits in the next six months. After six months, she’d have to apply for another plan, and she may not be accepted if she developed any health conditions under the previous Short Term Medical policy. Amy must decide if the cost savings are more important than preserving her rights to guaranteed health insurance in the future.

With Individual Medical, Amy can purchase permanent coverage, with the benefits she chooses, for $71.63** a month. The application process is usually more involved than for Short Term Medical, but it may be worth the time and effort since Individual Medical would provide Amy with a plan for as long as she needs.

*COBRA premiums derived from the 2008 Kaiser/HRET Survey of Employer-Sponsored Health Benefits.

**Rates based on 28-year-old female in Grand Rapids, MI. Short Term Medical rate with $2,000 out-of-pocket maximum and 80/20 coinsurance. Individual Medical rate with $2,000 deductible and $0 access fee.

For costs and further details of the coverage, including exclusions for pre-existing conditions, any reductions or limitations and the terms under which the policy may be continued in force, contact Assurant Health.