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COBRA – What a Joke – Can You Really Afford Your Employer Health Insurance If You Lose Your Job?

You have just lost your job and your human resources representative has just informed you about COBRA (Consolidated Omnibus Budget Reconciliation Act). In theory, COBRA is awesome (if you qualify), it gives a person who becomes unemployed a way to stay covered under the old health insurance policy.

There are two things to remember about COBRA.

1. You can only participate and be covered for 18 months
2. In almost all cases, you must pay 100% of the premiums because the company does not help pay for the coverage.

How does that break down for most Americans? Let’s quickly take a look at some facts about using COBRA and employer-sponsored health insurance:

… An individual country around $ 600 to $ 800 per month for continuous COBRA coverage
… A family pays approximately $ 1,250 to $ 1,500 per month for continued COBRA coverage
… The average person with unemployment insurance pays $ 1,334 a month
… Slightly less than 20% of people who are eligible for COBRA can afford to use it
… Most people don’t know about the COBRA “loophole” (Basically, you have 60 days to decide if you want to use COBRA. You can use the insurance for 59 days). In essence, you can get $ 1,200 to $ 1,600 worth of free health insurance coverage depending on how much your premiums cost.

COBRA is not a real answer, not even for temporary health insurance; you can get affordable and cheaper coverage. This is quality health insurance coverage. You can purchase your own personal or family health insurance policy that can be customized and better suited to your needs

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