With unemployment rates reaching the highest levels in recent memory, BestHealthCareRates.com is encountering many questions regarding COBRA and COBRA alternatives. Understanding COBRA, and the problems inherent in the plan, can help individuals & families who have lost their medical insurance plans make the most beneficial decision for themselves and their family health insurance.
The Consolidated Omnibus Budget Reconciliation Act, or COBRA, was enacted by Congress to allow employees the option of continuing with insurance through the employer’s group plan for up to 18 months after termination of employment. Individuals who have recently lost their healthcare insurance coverage should be aware of the following pitfalls of the COBRA plan:
- Because the former employee must cover all premiums previously paid by the employer, COBRA is expensive. Monthly costs average $600-800 for individual health insurance and $1300 for families.
- Unemployment compensation is rarely enough to cover the cost of COBRA.
- People who have recently lost their jobs may not be prepared to deal with the added stress of finding affordable medical plans before COBRA’s 60-day sign-up deadline expires.
Getting a family health insurance comparison from a qualified insurance agent can equip a person to make an informed decision about healthcare options. “Often, the former employee is not at all aware of their options and they needlessly stay with a higher cost plan,” said Tom Carolan, Director of Client Services for BestHealthCareRates.com. “By making a health insurance comparison, one can see the great potential savings that exist for a family even if the individual employee remains on the employer plan. A cost-cutting COBRA alternative is essential for many households to survive hard times.
Since 2001 BestHealthcareRates.com has helped thousands of families and businesses to find the most benefits for their insurance budget. The company is committed to exceptional service and strives to achieve 100% customer satisfaction and Affordable Health Insurance for all. For more information visit www.BestHealthcareRates.com, email TomC@BestHealthcareRates.com or call Tom Carolan Director of Client Services at 1-877-812-5111.