COBRA Alternatives Helps Families to Make Sound Financial Decisions By Tom Carolan At Isnare.com Ezine Articles

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 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.

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