Does COBRA Insurance Coverage Work For You
If you have recently become unemployed, you may be considering your options for health insurance. One option you may be looking at is COBRA insurance coverage, but a more affordable alternative to COBRA may be an individual health insurance plan. Here's some pointers to help you decide what will work best for you and your family.
Do you qualify for COBRA insurance coverage?
Traditionally, people that lost their job who worked for a company with more than 20 employees which provided group coverage will be COBRA eligible. COBRA insurance coverage is an extension of the health coverage you had while employed and lasts for up to 18 months. The cost is usually much more expensive than what you used to pay because now you are required to pay the whole premium, which includes the portion that the employer paid, in addition to what you used to pay. There are requirements that need to be met for you, your spouse or your dependent children to qualify for COBRA. The following link provides information to help you understand how COBRA coverage works http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.HTML
Additionally, the American Recovery and Reinvestment Act of 2009 includes a 65 percent subsidy on the cost of COBRA premiums for up to nine months, not the full 18 months. You will need to talk with your former employer to see when the company is ready to administer the subsidy and the difference in the cost of the coverage.
Budget Concerns? Find an affordable alternative to COBRA.
You may now find that an individual health plan is a more affordable option. You can get a quote in seconds and review the benefits of the plan you're interested in. Selective coverage is allowed through COBRA, providing couples and families a way to keep everyone insured. A family member’s pre-exisiting medical condition, such as pregnancy, may make her a good candidate to continue coverage through COBRA, while purchasing a less-costly individual health plan for the remaining family members.
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