Unemployment Health Plan Alternatives

The Basics of COBRA Health Insurance

Lots of people think that COBRA is some type of major medical plan. But this is actually the acronym for the federal rules which allow some ex-employees to keep their group benefits for several months after termination. The name, COBRA, is not any type of federal, state, or individual health insurance at all. It is simply the name of the rules that allow terminated employees to keep their group plan for awhile.

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.

Only some companies are required to extend these COBRA group medical benefits. Not every terminated worker will benefit from this law.

Do you have other medical plan options besides COBRA?

Some groups of people should do everything they can to keep their group plan. This can includes pregnant women or other people with pre-exissting conditions. But healthy people can find lots of other options on the market. And people who are left without income to pay COBRA extension premiums may be able to qualify for state or federal help.

Private Medical Plans – There are dozens of individual health insurance plans on the market. These plans can be kept in force if the employee finds a job without group benefits or decides to start a business. Underwriting processes mean that not everybody gets accepted, but it also means that healthy people tend to get 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.

State High Risk Plans – Every state has some sort of high risk plan for people who do not have group benefits and cannot get accepted by an individual plan. Again, not everybody qualifies.

Some people should accept the COBRA group health insurance option. But you should look into your unemployment medical plan alternatives before you decide.

Look for the best individual health insurance.