You were just laid off… options other than COBRA can save you money.
Most employers offer continuing insurance coverage where you can temporarily continue your health insurance coverage through a federal law known as COBRA.
Congress passed the Consolidated Omnibus Reconciliation Act (COBRA) two decades ago to give families an insurance safety net. Before then, people who lost health insurance at work often had trouble qualifying for coverage when they tried to buy it on their own. They would get turned down or face exorbitant premiums if they had pre-existing health conditions.
So what does that really mean? When your employer provides health insurance benefits, they typically pay 50% and you pay 50% of the monthly premium. If you choose COBRA, you will be paying the employer’s portion (50%) and your portion (50%) plus a 2% administrative fee.
Purchasing your own health insurance can save you money. Look at these examples where one spouse was laid off. (Neither of these couples qualify for an Affordable Care Act subsidy. Affordable Care Act Plan premiums would be very similar to COBRA.)
A family of four with a couple in their 40s and two children
- COBRA monthly premium is $1442
- Extended 36 month short term plan monthly premium of $738
A married couple in their mid 50s:
- COBRA monthly premium is $1701
- Extended 36 month short term plan monthly premium of $830
You have choices…contact me for a free comparison!
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