Posted on Wed, Dec 10, 2008
With unemployment possibly reaching as high as 9% in the next year, BestHealthcareRates.com is fielding a record number of questions about COBRA alternatives for family health insurance plans. Contrary to popular misconceptions, COBRA is not a health insurance plan; rather, it is a law named the Consolidated Omnibus Budget Reconciliation Act. COBRA protects employees in the event they lose their employer-sponsored health benefits. Qualified employees may keep the dental and medical insurance they had under their employer for 18 months. However, because the former employee carries the entire cost of the insurance policy – up to 102% of the original premium, the cost of maintaining insurance can be prohibitive.
Uncertain economic times are driving already financially-stressed employees to seek a more affordable COBRA alternative. BestHealthcareRates.com offers more affordable family health insurance plans than what the employer based plan would provide. By doing health insurance comparisons, one can get similar, lower cost benefits by taking a COBRA alternative. Often, the former employee is not at all aware of their options and they needlessly stay with a higher cost plan. Once they see the benefits of a COBRA alternative, they opt out of their former plan. Dental and medical insurance can be found in these COBRA alternatives too. Without a COBRA alternative, the unemployed may be paying much more than they need to at a time they can least afford it.
“If you have a disability, you may need to opt for your employer’s coverage but can still get a COBRA alternative for the rest of your family,” said Tom Carolan, Director of Client Services with BestHealthcareRates.com. “Again, by making a health insurance comparison, you will see the great potential savings that exist for your family even if you, as an individual, remain on the employer plan. A cost-cutting COBRA alternative is essential for many households even if the coverage is for the rest of the family.”
Posted on Fri, Dec 05, 2008
BestHealthcareRates.com reports with unemployment expected to rise to 9% by next year many families will, most likely, be forced to decide whether to take their employer’s COBRA health insurance or look at alternatives provided in the marketplace. Losing employer health insurance is a challenge at any time, but during a recession the choices seem harder for families trying to budget. COBRA alternatives exist, but consumers are not always aware of the options, often at a considerable cost difference from the employer based plans.
As individuals begin the long search of finding a new job or alternative employment they often decide to opt out of their employer based COBRA plans because the cost is too steep. These newly unemployed are now newly uninsured, but it doesn’t have to be like that – they can get the help they need with cost cutting COBRA alternatives. COBRA health coverage is required to be offered by the law, to provide coverage to your family in case of layoffs, but the costs are often out of reach for a family that is currently undergoing a loss of income.
Tom Carolan, Director of Client Services with BestHealthcareRates.com, states, “COBRA coverage is required by employers but it often isn’t the best financial decision that a family faced with unemployment should consider.” His company offers a comprehensive look at the alternatives to COBRA coverage that individuals and families can research for their continued health care needs.
Carolan continues, “Those aged 20-35 who are laid off often think that they don’t need health coverage because they are relatively healthy. This group in particular should consider that with the rate of unemployment and health care costs rising, purchasing a lower cost alternative to the COBRA plan can continue to maintain their health and alleviate any further financial burden that a health crisis would create.”
Consider that COBRA is an expensive option because although employers are required to provide it, they do not pay for any portion of the monthly premium as they did when you were employed. Unfortunately, you might be required to pay up to 102% of the monthly premium in order to continue coverage under your employer’s COBRA plan. If you have a disability and continue your coverage by extending your COBRA you could be required to pay up to 150% of the plan. These costs are often a burden that a family cannot afford to budget the necessary payments to keep their coverage. If you have pre-existing health problems a COBRA plan may be your only option, but you might consider an alternative health plan for your spouse or children until you have retained employment to cut your health care costs.
Looking into alternative health insurance options is liberating for many family’s. It allows them to see the options in health care that their employer is not required to represent. Finding a health coverage plan that meets your families needs and budget can be accomplished with just a little research into what is available online.
During this time of economic fragility being smart about your health care coverage decisions will become a saving grace. Having good information is critical and knowing what is available for your health care needs will provide needed peace of mind. Even if you are relatively healthy it is a wise choice to get smart about health care coverage for yourself or your family – knowing your alternative choices to COBRA benefits offered by your employers will save you money until you have the secured employment and employee based health coverage in the future.