COBRA insurance offers you the ability to continue on your current employers insurance plan for up to eighteen months after you have terminated employment. You can use COBRA whether you have quit or if you have been fired. COBRA insurance usually has a high rate because you pay the full premium, including what your employer paid on your behalf. It the price seems like too much there are other options available to you.
1. COBRA Alternative: Short Term Health Insurance
One option is to get short-term health insurance to cover the lapse between your current insurance and the insurance that you will get from your new employer. One of the advantages of this insurance is that the application process is quick. This insurance may have coverage limits, and is not meant to last longer than a year. Some policies are for a specific length of time. Other policies just have a limit as to how long you can qualify for the plan.
2. COBRA Alternative: Independent Health Insurance
Another alternative to COBRA insurance is an independent health insurance policy. There are policies that have good coverage at a lower cost than COBRA insurance. This is a good option if you do not have preexisting conditions or if you are single. This insurance policy can last for as long as you want it. The rates may increase each year. You can choose a deductible and copayment plan that best fits your needs.
3. COBRA Alternative: High Deductible Health Insurance
A high deductible health insurance plan is an excellent alternative to COBRA insurance. These plans have a lower monthly premium, but you have a high deductible to meet before coverage kicks in. This is a great solution if you are looking for ways to save money during difficult times. You can set up a health savings account in conjunction with a high deductible account.
4. Consider Using Your COBRA Option
Additionally you should consider the cost of COBRA and the coverage it provides when you make the choice. At times the coverage offered may be very good or you may need this type of plan because of your family or preexisting health conditions. Carefully consider the monthly premium costs as well as out-of-pocket costs for this plan when looking at your other options.
5. Choose the Right Alternative
In order to make the correct choice for your individual situation you should look at all the options available to you. At times the cost of COBRA may be less expensive than the alternatives. You may also go with short-term health insurance while you are waiting for approval on a high deductible or independent health insurance plan. If you have a family you may want to consider using different insurance for each family member depending on the history of the individual.
