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By Patricia Barrett, CFP CDFA Mediator
Medical insurance is a very important issue for the recently divorced woman. Assuming she has been a stay at home mom, here choices are:
1) Assuming she secures fulltime employment and can secure group coverage, this is by far the most economical since the company is going to subsidize the cost, usually paying 2/3 to ¾ of the cost. Average cost $150/month with low copays.
2) If she is retaining for months or years or not able to work fulltime, AND if she’s in very good health, her next most economical choice is individual coverage. Insurance companies are VERY picky about “preexisting” conditions (at least until 2014 when the health care legislation changes this). Cost on average $300 per month without copays.
3) IF she has preexisting conditions and isn’t taking a fulltime job, and IF her husband works for a company with more than 20 employees, she is entitled to COBRA for up to 36 months. But, the company doesn’t subsidize cost and can add up to 5% administrative fee. Estimated cost will be between $350 and $600 per month.
4) The last resort is the “Texas health insurance Risk Pool”. Premiums are based on age, zip code, amount of deductible and smoker/non-smoker. Preexisting conditions don’t matter. Costs are from $400 to $1000 per month.
Important: NEVER leave a gap in coverage. This can prevent you from qualifying for individual coverage OR the high risk pool.
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