If you lost your job you may have been offered COBRA insurance. Although many people have heard of this type of insurance, not many people really understand what it is and what it does.
What is COBRA?
COBRA, which stands for the Consolidation Omnibus Budget Reconciliation Act of 1985, is essentially a law that allows individuals who lose their health insurance from their employer to continue receiving benefits for up to 18 months.
Who is eligible to receive COBRA?
Generally, individuals are entitled to receive COBRA if they are laid off, if their work hours are reduced, if they quit, or if they are terminated. COBRA insurance must remain available to the employee and his/her spouse and dependents.
However, to keep your group health insurance coverage under COBRA you must pay a monthly insurance premium that doesn’t include the discount your employer offered you. In other words, expect to pay a hefty monthly premium if you accept COBRA health insurance coverage.
When is COBRA the right choice?
COBRA health insurance may be incredibly helpful, however, to individuals with pre-existing medical conditions that may have difficulty getting adequate coverage under another health insurer. Most individuals with pre-existing medical conditions may find it extremely difficult to find a health insurer that will cover them; and if they do, they will likely pay sky-high premiums.
An individual may also accept COBRA health insurance coverage if their new employer does not offer health insurance or does not offer adequate health insurance.
Are there any other options besides COBRA?
If you don’t have any pre-existing medical conditions you may want to instead search for private health insurance coverage, as it is often much less than COBRA insurance coverage. There are many companies that offer private health insurance, including the major insurers like Blue Cross/Blue Shield.
A great way to search for private health insurance is to simply look on the Web. Often times, health insurance companies have easy-to-navigate websites that provide consumers with quotes on health insurance. In fact, searching for private health insurance using the Web is usually the best way to find quality health insurance at a reasonable cost.
