Cobra Insurance

When taking on a new job, people are often super excited. They have every right to be. But when you switch over to a new job, for a short period of time you may have to go without health insurance. Going without health insurance is never a good idea. With the escalating costs of health benefits, if you were to end up in the hospital without coverage you could end up with a hospital bills worth tens of thousands if not hundreds of thousand of dollars. If you happen to come down with a horrible disease like AIDS or need treatment for cancer, you could rack up huge bills.

Thankfully, there are options available to those who do not want to go uncovered. COBRA is available to individuals who chose to purchase it.

What is COBRA?

COBRA insurance is the option to continue temporary coverage of their health benefits. CORBA stands for The Consolidated Omnibus Budget Reconciliation Act of 1985 and requires all employers with group plans to offer this option. Essentially, you are able to purchase insurance through COBRA and continue your coverage from your previous place of employment.

Why Is COBRA so expensive?

The pricing for COBRA includes the cost paid out by your employer. You may not be aware but your employer usually pays a significant part of your health care costs. This is why it seems like you are paying much more for health insurance post employment. There is also an added 2% fee for COBRA services. There are lower cost COBRA alternatives available, but they are only available to those in good health and who live in specific regions of the United States.

How Do I Sign Up?

When you leave your place of employment they must provide you with information regarding COBRA. There are forms you must fill out and a payment to be made to endure you continue health insurance coverage. Should your employer not provide you with the necessary information you can visit for assistance.

Who Is Eligible?

Almost all individuals who leave a current place of employment are eligible. If you were terminated, laid off or have quit, you are eligible for COBRA. All you need to do is complete the forms provided to you and pay for the service on an ongoing basis.


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