What is COBRA?
COBRA is not health insurance, as some people think. It is a law that protects some terminated employees. It provides an extension of group health insurance for several months after employment is terminated. All companies do not have to offer the extension though.
The health benefits will also cost money. When an employee gets group benefits from their jobs, the company usually pays part of the premium. When the employee is terminated, they will have to pay the entire premium. That is why many people think that COBRA is expensive. The cost is actually entire premium for the group health insurance benefit.
Should Employees Accept COBRA?
Some people should accept the extension. People with certain health problems, a pregnant family member, or other issues should consider extending their group health benefits. It is important to understand the available alternatives before making a decision. People with health issues will probably not have as many affordable health insurance options as very healthy people. In addition, it can be tough to find options for pregnant family members, or even for families with a pregnant family member.
What Are Health Insurance Alternatives?
There are many individual health plans on the market. These include permanent and short term medical plans. Younger and healthier people may find affordable coverage, and it will be a good alternative. For instance, if you are planning on finding another job with group benefits very quickly, a short term policy may be the best solution. If you are planning on starting your own business or performing contract work, a permanent individual health insurance policy can work well for you.
Are There Other Alternatives for Medical Coverage?
Do you have health problems that cause insurers to decline you? And is your COBRA extension just too expensive, or do you lack that benefit because your employer did not have to provide it? Your choices will be limited by the available plans in your area.
If you have very limited resources, you may be able to qualify for state and federal programs like Medicaid and CHIPS (Children). Sometimes CHIPS will also cover pregnant women, but you need to make sure as this differs by state.
If you cannot qualify for a state or federal program, you may look for a county health program which has a sliding fee scale. In addition, every state has a high risk health insurance plan for people who cannot get private health insurers to accept them. These high risk programs do have premiums, though, and they can be very expensive, especially for people who are used to having their company pick up most of their medical insurance bill!
How Can You Find Alternatives?
You should start with your company benefits department to find out what group extension is available to you, and also, how much it will cost. Then explore private insurers. Find out if a family health insurance policy is affordable, and if it will accept everybody in your family. Make sure your family is accepted before you turn down any group extensions, and make sure it will provide the coverage you need.
If private health plans are not an option, you should be able to contact a local insurance agent or your state insurance department for more information on government benefits for low income or high risk people.
We make it easy to find COBRA health alternatives with our safe, fast, and free individual health insurance quote forms.
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