The Consolidated Omnibus Budget Reconciliation Act (COBRA) makes it so that you can continue with your current employer’s group health insurance after quitting or losing a job. Just how long you’ll be covered will depend upon when the event occurred. For instance, if you’ve lost your job or had your hours reduced you’ll be able to keep the coverage for up to 18 months. Unfortunately, this insurance tends to cost a lot of money because you’re responsible for paying the full premium and 2% of administrative fees. There are some Cobra Insurance Alternatives that you can choose though.
Short-Term Health Insurance
This is an option when you want to cover the lapse between your current employer and your new one. You should be able to get a quote in as little as 30 seconds online then, if you’re eligible, your coverage will start the next day. Fortunately, there is no open enrollment window so you can apply at any time.
ACA Marketplace Health Insurance
If you’re in need of comprehensive health insurance coverage, this is one of the best alternatives to COBRA. Made possible by the ACA (Affordable Care Act), you qualify for health insurance via your state’s “Marketplace” or “exchange.” This is a health plan shopping and enrollment service that’s run by the state that you live in. Anyone who lawfully abides in the United States and isn’t incarcerated is eligible.
Independent Health Insurance
This is a great option if you qualify for an ACA plan but want something more comprehensive. These are individual plans that you purchase from a private insurance company. Since this isn’t a marketplace plan it won’t allow you to take advantage of any premium assistance. However, you can sometimes find good coverage for less than what you’d pay for COBRA especially if you’re willing to opt for a high deductible.
Choosing the Right Cobra Insurance Alternatives, to decide what’s right for your specific healthcare situation you’ll need to consider what alternatives are available to you. To avoid paying high premiums you should opt for short-term insurance until you’re approved by another insurance plan with a high deductible so you’re paying less money for it. Of course, you may also be able to join your spouse’s family plan. Regardless of what you decide to do your goal is to find the plan that grants you the care you need when you need it at a price you can afford.
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