Health Insurance While Unemployed
Do you Understand COBRA Unemployment Medical Insurance?
COBRA is simply the name of a federal law which protects some terminated employees. It forces larger employers with group plans to extend those benefits during several months of unemployment. It is not health insurance, in itself, but simply a rule which may help some unemployed people keep their company medical plan.
COBRA benefits can be expensive. During employment, a company usually pays part of the premium. After termination, the ex-employee must usually pay the whole premium. That is why many people are shocked when they find out how much unemployment health insurance costs! They had no idea how much their old company had paid.
Not every company has to extend COBRA benefits either, so only some ex-employees will even get an offer.
Are there COBRA Alternatives?
Many people should do everything they can to hold on to their group health insurance. A pregnant woman or man with heart trouble may have trouble being covered on the private market. But fairly healthy individuals and families can find very affordable premiums on private plans. Families without the money to pay for health insurance may be able to find a government plan.
Family Major Medical Plans – It is easy to find private health insurance. These plans are portable, meaning they can be kept if the next job does not come with group health. Not every person will qualify though, but those that can qualify can usually find lower rates.
Public Medical Insurance – You can also find health insurance provided at the federal, state, or county level. Very low income people may qualify for Medicaid. Moderate income families can benefit from CHIPS, and sometimes those benefits extend to pregnant women. County hospital districts can also help tide people over.
Insurance for Declines – In the US, every state has some sort of program for those who cannot be accepted by private insurers. These plans usually do have a premium, and they can be expensive. And not everybody will qualify. Check into the rules in your own state.
Some people should accept the COBRA group health insurance option. But you should look into your unemployment medical plan alternatives before you decide.
