Health Insurance While Unemployed
What is COBRA?
Lots of people think that COBRA is some type of major medical plan. But this is actually the acronym for the federal rules which allow some ex-employees to keep their group benefits for several months after termination. The name, COBRA, is not any type of federal, state, or individual health insurance at all. It is simply the name of the rules that allow terminated employees to keep their group plan for awhile.
COBRA benefits can be expensive. During employment, a company usually pays part of the premium. After termination, the ex-employee must usually pay the whole premium. That is why many people are shocked when they find out how much unemployment health insurance costs! They had no idea how much their old company had paid.
COBRA rules do not benefit all employees either. Some companies are exempt, so the terminated workers will not even have this option.
Do you have COBRA health insurance alternatives?
Some groups of people should do everything they can to keep their group plan. This can includes pregnant women or other people with pre-exissting conditions. But healthy people can find lots of other options on the market. And people who are left without income to pay COBRA extension premiums may be able to qualify for state or federal help.
Family Major Medical Plans – It is easy to find private health insurance. These plans are portable, meaning they can be kept if the next job does not come with group health. Not every person will qualify though, but those that can qualify can usually find lower rates.
Public Medical Insurance – You can also find health insurance provided at the federal, state, or county level. Very low income people may qualify for Medicaid. Moderate income families can benefit from CHIPS, and sometimes those benefits extend to pregnant women. County hospital districts can also help tide people over.
Insurance for Declines – In the US, every state has some sort of program for those who cannot be accepted by private insurers. These plans usually do have a premium, and they can be expensive. And not everybody will qualify. Check into the rules in your own state.
Look into the alternatives that are right for your family. Some people should sign up for a COBRA group medical plan, but others may do better with another choice.