COBRA – What a Joke – Can You Really Afford Employer HealthCare Insurance If You Lose Your Job?
You just lost your job and your human resources representative just told you about COBRA (Consolidated Omnibus Budget Reconciliation Act). In theory COBRA is awesome (if you qualify) it provides a person who become unemployed a way to stay covered by the old health insurance policy.
There are two things to remember about COBRA.
1. You can only participate and be covered for 18 months
2. In almost every case, you have to pay 100% of the premiums because the company doesn’t help pay for coverage.
How does that break down for most Americans? Lets quickly examine some facts about the use of COBRA and employer sponsored healthcare insurance:
… An individual pays about $600 to $800 a month for continued coverage under the COBRA act
… A family pays roughly $1250 to $1500 a month for continued coverage under the COBRA act
… The average person on unemployment insurance clears $1334 a month
… A little less than 20% of people who are eligible for COBRA can afford to use it
… Most people do not know about the COBRA “loophole” (Basically you have 60 days to decide if you want to use the COBRA. Use can use the insurance for 59 days.) In essence you can get $1200 to $1600 worth of free healthcare insurance coverage depending how much the premiums cost.
COBRA is not a real answer, even for temporary health insurance; you can get affordable and cheaper coverage. This is quality healthcare insurance coverage. You can buy your own personal or family health insurance policy that that can be customized and will better suit your needs