As if losing a job and an income is not tragic enough, many whoa re unemployed worry most about losing health insurance. Finding affordable family health insurance coverage is not an easy task. The shock truly comes when one sees the insurance quote from private insurance companies.
Adding dental insurance is even more devastating. While some take the risk of not needing healthcare insurance while unemployed, others choose not to take the gamble. The most popular type of insurance coverage for those who lost a job is COBRA insurance. While COBRA is definitely not considered an inexpensive health insurance, it is the only option for many.
What is COBRA Medical Insurance?
COBRA is actually an act rather than a company or insurance plan. COBRA stands for Consolidated Omnibus Budget Reconciliation Act, which was in 1985. The act requires employers to offer employees temporary insurance coverage if the current insurance stops due to lay-off, release from the job, or other qualifying conditions.
How Long Can Employees Keep COBRA Insurance?
COBRA is temporary healthcare coverage. Employees that lose their insurance coverage due to terminations of the job, lay-off, or losing full-time position, can keep COBRA insurance for 18 months. This includes family insurance coverage. If the employee becomes disabled during the first two months of having COBRA, the insurance is extended for 29 months. Other conditions may allow for 36 months of COBRA coverage.
How Much Does COBRA Cost?
Like all health insurance, the amount that one pays to keep coverage through COBRA depends on the plan selected, the type of coverage, and the people covered. However, expect it to be expensive. While most employers pay all or a portion of the insurance premium, through COBRA the former employee is now required to pay the entire premium including the portions that were once paid by the employer. This medical insurance may cost up to or over $600 per month, especially is dental insurance and vision insurance are kept active.
Is COBRA Worth the Cost?
If an employee and family have no previous health conditions and are healthy, COBRA is likely not worth the cost. Most people find more affordable insurance on their own through private companies. However, if there is a long history of medical conditions or a family member to be covered is pregnant, COBRA may be the most affordable or obtainable option for health insurance. Finding health insurance to cover preexisting conditions is nearly impossible and the health insurance quote is very expensive.
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