Government sponsored health insurance plans are expected to be made affordable and accessible for every citizen. The United States of America is not left out as it has also made such provisions with the likes of COBRA health insurance.
COBRA health insurance plan has become popular over time because most employers now use it. Well, people want to how much it cost before they go into it
What is COBRA?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) was signed into law by the United States government about 2 decades ago. Since then, the program has catered to the health insurance needs of fired, retired, and laid off work individuals. Learn more about COBRA insurance alternatives.
The down side to using COBRA health insurance is that it does not last forever. It is not a permanent insurance plan. COBRA lasts for three years tops depending on the laws guiding the state from which you are from.Before your COBRA plans expires, you are advised to already have an alternative to fall back to. Not having an alternative might delay your registration during enrollment period, causing you to wait till its open. Like they say, a stitch in time, saves nine.
Written below is a list of qualifying events that makes you eligible for COBRA.
- Private business or companies with more than 20 employees are eligible for COBRA. Employers are advised to offer COBRA coverage to any of their employees that is qualified.
- If you have been fired, laid off from work, or retired, then you are qualified for COBRA benefits.
- If you are the wife, husband, child, or relative of a COBRA health insurance beneficiary, then you may be eligible. Click here to get more about COBRA benefits.
- Divorcees may also enjoy COBRA benefits if their ex husband or wife was a COBRA beneficiary.
Note: In case this list is still not clear, you can talk to the human resources of the company you work in. They are in the best position to tell you if you are qualified or not.
How much does COBRA cost?
COBRA can be quite expensive. It KS expensive because it cover 100% of your health treatment. The amazing thing about COBRA is that your employer caters for 70% of your insurance premium and 30% of your family’s own. So, you might not be really aware of the cost if you are still working under your employer.
Another thing you need to note is that COBRA cost depends largely on the coverage duration. For example, if your plan will last for a year, it will cost 102% of the premium health insurance. Again, ask questions before agreeing to any terms and conditions. Be sure that you can afford it for you and your family. Checkout more about COBRA coat on https://www.healthcare.gov/unemployed/cobra-coverage/
Cost of COBRA alternatives
Unfortunately, not all COBRA alternatives are cheap. Most have exorbitant prices especially the plans offered by private insurance companies. However, if you are looking for an affordable and accessible plan, you may want to check the insurance marketplace. You would be offered with a myriad of choices and all you have to do is pick the one you can afford.