Understanding COBRA Problems and Alternatives

People who have lost their jobs for any reason may be concerned about finding COBRA alternatives. The COBRA legislation was set up by Congress to provide protection for people who have health insurance provided by their employers. The Consolidated Omnibus Budget Reconciliation Act or COBRA was created to give people the option of continuing with insurance through the employer’s group plan for up to 18 months after termination of employment. In other words, if you lose your job for any reason you can elect to pay to keep the same insurance for up to 18 months.

It all sounds good in theory but there are a few concerns people face when considering using COBRA:

·COBRA is expensive. People have to pay about $600-$800 for individual health insurance through this plan. Families can expect a bill of at least $1300. Most people are unpleasantly surprised by the high dollar amount they are expected to pay for continuation of their health care coverage.

·Why is COBRA so expensive? While the person is working, the employer likely paid the majority of the health insurance premium. That was part of the employee benefits package. Once someone no longer works for the employer, the premium burden falls to the former employee because the employer is not required to pay for health insurance benefits for people who do not work for them.

·Unemployment compensation does not pay enough to cover COBRA. Affordability is important for people who have been laid off or lost their jobs. Affording a high health insurance premium is difficult for someone who lives on unemployment compensation. Most people who use their unemployment benefits only receive a maximum of $1300 each month. It does not make sense to spend almost all of that money to provide health insurance rather than food or living expenses.

·The government allows 60 days for someone to make the decision about whether or not to choose COBRA benefits or the alternative. Any person who has recently lost a job may not feel emotionally prepared to deal with finding affordable health coverage. Getting a health insurance comparison from a qualified insurance agent will equip a person to make a judgment about healthcare options.

The need for family medical insurance does not end when the job does. Changing jobs causes a lot of stress. Living without a job creates higher stress levels. High insurance premiums cause even more stress. Fortunately, COBRA alternatives do exist that can save money. A qualified private health insurance agent is the best person to consult for questions about health insurance.

The Right Health Insurance Agent is Important when Choosing COBRA Alternatives

People often get sticker shock when they hear the amount they will have to pay if they choose to continue coverage through their former employers' group health insurance plan. Often, people may pay as much as three times the amount they paid while working. Because it is so expensive, only 20% of eligible people choose to continue coverage. This leaves them uninsured and vulnerable to significant economic damage in the event that they or their family members suffer a medical catastrophe. The cost of health care is so expensive that one hospitalization can bankrupt a person.

The alternative to COBRA sponsored plans is private health insurance. In order to buy a private policy, a person must contact a health insurance agent. Using a health insurance agent offers an individual a chance for a free quote, a free health insurance cost comparison, and beneficial advice about their healthcare insurance coverage options. Insurance agents also act as liaisons between the individual and the health insurance company. In cases where there are questions or problems, insurance agents are often able to help their customer. This offers the consumer a valuable ally.

Finding the right health insurance agent can be an intimidating task. How can a person find a suitable health insurance agent they can trust? Here are a few things for people to consider as they look for a health insurance agent who can provide them with the medical insurance plan that works for them:

·Get a referral. One of the best ways to find a good agent is to get a referral from someone who is a friend. This will help take some of the anxiety out of the process and will make it more likely that a person can find a reliable agent to help them.

·Most states require insurance agents to get continuing education to maintain their licenses. Agents who go above and beyond for their clients are evident by the number of letters after their names. People can look for abbreviations such as AAI which means that the agent has taken the time to become knowledgeable about the insurance business. This is the type person who will make a good insurance agent.

·People should find someone with whom they are comfortable. Interviewing an agent may sound strange but it is a good idea to set up a meeting to ask questions. In fact, it is the best way to evaluate someone. Conversations over the phone do not always accomplish this objective.