Unexpected things can happen in your life. For instance, if you lose a job and start a new career, your health insurance plan is discontinued. Your former employer may give a temporary extended insurance coverage according to the Consolidated Omnibus Budget Reconciliation Act or COBRA. You qualify if you meet certain criteria such as the death of a spouse, divorce from the spouse holding the insurance, or quitting/ loss of employment. However, COBRA coverage is very costly. But there are Cobra insurance alternatives that will help you to remain covered. You must make up your mind whether to continue with the current health insurance policy through Cobra or get a different option.
Eligibility for Cobra Insurance
After quitting or losing a job, your former employer is not responsible for paying your Cobra premiums. So, you are still eligible for Cobra. If you start working for another organization that offers health insurance and has over 20 full-time employees, your plan must be compliant with Cobra laws. But those who have been employed by the federal government or church-based organizations are exempted. Small businesses with 20 or fewer workers cannot provide Cobra insurance when workers leave.
What to Consider Before Taking on Cobra Insurance Alternatives, before you consider writing off Cobra, first take a look at the coverage and the cost. Sometimes, the coverage is comprehensive. You might need this option if your family depends on it or if you are still undergoing treatment and you need continuous health care. When you finally choose an alternative, u can stop paying Cobra premiums but you will have to forego significant health benefits.
When analyzing the costs, take a close look at the monthly premiums and other related fees for the Cobra plan. The cost may be lower than the alternative in some scenarios. The decision of switching to an alternative is critical and so you must take your time. Do not be in haste. In fact, Cobra allows you 60 days after issuing an election notice so you figure out what you want.
Make the right choice for individual health care needs from the alternatives. You can go with short-term insurance coverage while still waiting for approval from another provider. For a more comprehensive plan, get an independent health insurance policy with a high deductible plan to avoid higher costs.
If your family is part of the plan, seek opportunities to combine your spouse’s policy. Or you can have different plans for every family member depending on their medical history. The idea is to pick a policy that offers the necessary care for the entire household and at an affordable cost.
