Cobra Health Insurance Explained
COBRA insurance enables qualified, recently separated employees to continue their group coverage by assuming responsibility for the total premium (plus a 2% administrative fee) for their coverage. COBRA is generally available for qualified individuals leaving a company with 20 or more employees. But some states have created COBRA-like programs for groups of less than 20 full time employees.
COBRA Insurance Extends Group Coverage Temporarily
Cost: Employer Sponsored vs. COBRA
|While Employed||Enrolled In COBRA|
|Family of four, age 30-39||Family of four, age 30-39|
|PPO, $250 deductible||PPO, $250 deductible|
|Monthly premium: $756.00||Monthly premium: $756.00|
|Employer pays 90%: $680.40||You pay 102%: $771.12|
|You pay 10%: $75.60|
The good and the bad
COBRA insurance is good because it provides assurance that individuals will not be without health insurance coverage and gives individuals time to find other coverage. The bad part about COBRA is that it can be too costly for people to pay for. Insurance companies noticed this problem and developed health insurance plans specifically to offset these high cost. Temporary health insurance plans are affordable and simple to apply. If you are an individual that has no preexisting conditions you should pursue this alternative coverage.
Things to consider when deciding if the COBRA coverage you have been offered are your best option: