Cobra Insurance Alternatives is available for all eligible ex-employees of enrolled employers. If your employer isn’t enrolled in the program, you after losing your job are not eligible to get COBRA (Consolidated Omnibus Budget Reconciliation Act) coverage. Cobra coverage is simply a continuation of your ex-job’s health insurance coverage of which you were formally enrolled. If Cobra coverage is not available, what are your alternatives.
COBRA Coverage
Your COBRA coverage offers between 18 and 36 months of your same insurance for the normal price. The main exception is that now the entire premium comes directly from you instead of half from you and half from your employer. That is why so many people complain about the cost of COBRA.
Cobra Insurance Alternatives
1) Short-term health insurance is one type of alternative solution. Short-term plans are limit coverage of individuals to only 365 days. They were designed to offer health coverage for students in graduate school/losing coverage under their parents’ coverage or individuals switching employers. As a temporary program, these plans don’t cover pre-existing conditions. The plans tend to be less expensive than COBRA plans.
2) Independent Health Insurances are plans that are not a part of the Affordable Care Act (ACA), so no subsidies are available to pay the premiums. You can juggle deductibles and co-payments to adjust the total premiums paid. These plans cover pre-existing conditions and pay for preventative care, so your mammograms and annual checkups are included. Most importantly, there’s no annual cap on the cost of your health care.
3) ACA Healthcare options require you to look at marketplace health insurance. You’ll have to shop your state’s marketplace or exchange. Depending on your circumstances, you may be eligible for financial assistance paying your ACA health insurance premiums. If you don’t need assistance, you may be hoping to use your premium payments for tax credits. You can only qualify for this if your income is between 100% and 400% of the federal poverty line. You’re only eligible for ACA coverage if you live in the USA.
4) High-Deductible Health Insurance is yet another Cobra Insurance Alternatives. As indicated, you must pay high deductibles and many up-front health care costs before your insurance pays a dime. This naturally, reduces the premium costs, but it may reduce your monies so fast it’s not affordable. For some, in excellent health, this will be a good plan. Just knowing there are alternatives to COBRA allows some people the freedom to breathe and make an informed choice from among those alternatives.
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