Due to the stagnant economy, more Americans are losing jobs and their health insurance.
COBRA, a federal program that allows workers to keep their employer-sponsored insurance for up to 18 month after they are laid off, is available. COBRA must be approved or declined within 60 calendar days.
COBRA can prove prohibitively costly because it requires workers to pay all their monthly premiums. COBRA monthly premiums for health insurance can cost between $400 and $1000 per month.
A survey by eHealthInsurance.com found that most consumers are not well-informed about their health insurance options. Sixty percent did not know that there were individual and family options for health insurance that are often significantly cheaper than COBRA.
“COBRA coverage is a good option for some,” said Bruce Telkamp, executive of eHealthInsurance.com. “But the fact is that, if you are relatively healthy, you can get individual or family health insurance plans through brand-name companies for a fraction of the price of COBRA.”
COBRA coverage cannot be denied based on medical history. COBRA coverage is available to pregnant women, people who have existing medical conditions, and those on prescription drugs.
Before choosing COBRA, however, healthy people should thoroughly research all options. People who are not expecting to be covered by their employer within six months can find short-term plans that cover catastrophic costs a great option. You can find standard individual and family plans that are surprisingly affordable. In many cases, they provide the same benefits as employer-sponsored coverage, but at a lower cost.
Consumers should be familiar with all options in their region before declining or cancelling COBRA. The Web site cobralearning.com provides information on COBRA and COBRA options.
