Why COBRA Coverage Might Not Be Your Best Option
These days, it seems like an endless number of Americans are losing their jobs -- right along with their health insurance coverage. The federal law COBRA can help many in this situation by allowing the continuation of employer-sponsored coverage for a temporary period of time.
But what many don't know is that continuing coverage with COBRA isn't always the best option -- even with the federal financial aid provided through the recently passed economic stimulus bill.
Quick Overview of COBRA
- COBRA is a federal law that helps Americans keep their health insurance after a job loss.
- COBRA is only a temporary health insurance solution.
- You can stay covered under COBRA between 18 and 36 months.
Your COBRA Alternatives
- COBRA can be expensive, but helps ensure you have continued coverage for pre-existing health conditions.
- Individual health insurance can be more affordable and a better fit for your needs.
- Don’t decline or drop COBRA coverage before you’ve explored all your options.
COBRA and the Stimulus Plan
- The government will subsidize 65 percent of your COBRA premiums.
- Subsidy provided for up to 9 months.
- Subsidy available for any American who lost a job between September 1, 2008 and December 31, 2009
This content is designed to provide basic guidance and information in regards to the Consolidated Omnibus Budget Reconciliation Act of 1985 the American Recovery and Reinvestment Act of 2009 and other relating statutes, and is not intended, nor has the authority, to replace the advisement of attorneys at law, legal advisers, or the law as it stands. DO NOT decline, cancel, or otherwise opt-out of COBRA continuation coverage or any other current health insurance coverage until you receive a letter of confirmation into an alternative health insurance plan and you are fully aware of its benefits and out-of-pocket costs including the deductible and premium.
