Are there other alternatives to COBRA?
As millions of Americans lose their jobs—and with them, their employer-based health insurance—they’ll need to look for other coverage. Some think immediately obtaining health insurance through COBRA, or the Consolidated Omnibus Budget Reconciliation Act, may be an option. Especially if you want to stick with your existing doctors because you have an existing condition, such as cancer or you’re pregnant, you might consider COBRA if you can afford to do so. If it is an option, consider joining your spouse’s employer-sponsored plan. Losing employment is typically a qualifying event to add a spouse or dependents on most plans. If you’re younger than 26, you’re eligible to be covered under your parents’ insurance plan, according to the Affordable Care Act. If you join a trade or professional group, you might be able to find a lower-premium plan.
As millions of Americans lose their jobs they’ll need to look for coverage.
If you have insurance through your job, a job loss generally qualifies you for special enrollment under the ACA. You must apply within 60 days of your job loss, or you may have to wait until open enrollment begins in the fall. The Marketplace offers premium subsidies to those who expect their 2020 income will be 100% to 400% of the federal poverty level: $12,490 to $49,960 per individual and $25,750 to $103,000 per family of four.
Customizing your coverage is essential as health insurance is not a “one size fits all” type of product.
You may also check if you’re eligible for Medicaid by visiting the Medicaid.gov or HHS.gov websites. In the more than 30 states that adopted the ACA Medicaid expansion, adults can qualify if their current income is up to 138% of the federal poverty level, or $1,467 a month for an individual and $3,013 a month for a family of four.
However, COBRA can serve as a lifeline to those facing an unexpected job loss, but it is also really expensive. Due to its prohibitive cost, COBRA is an undesirable coverage option for people who can’t afford to pay its sky-high premiums each month. If you have a limited budget and are willing to do a little research, alternatives to Cobra coverage offer a more affordable solution. I can help you find which COBRA alternatives are best for you and your family.
There are Three Main Alternatives to COBRA Coverage?
Buy a Marketplace Plan. If you choose to shop for a healthcare plan on the Obamacare exchanges, check to see if you qualify for a subsidy before evaluating your options. Loss of a job is a qualifying life event that makes you eligible to enroll at any time of the year.
Purchase a Private, Off-Marketplace Plan. While premium and deductible costs seem to be higher in off-Marketplace plans, insurance policies sold outside the ACA exchanges are more likely to offer better benefits, such as out-of-network coverage. Various plans are available with zero or little deductible.
Apply for Short-Term Coverage. Like their name implies, short-term health plans function as temporary health insurance for people who are in-between major medical insurance plans. Short-term health plans don’t provide as much coverage as a Marketplace healthcare plan. On the other hand, they are much cheaper and can serve as a temporary solution until you can get more comprehensive coverage.
Let me help you to find the right health insurance. You may be surprised at the number of options are available. You may also be surprised that there’s no fee for my services. As an independent agent, I represent you, not insurance companies. You can contact me at 513-773-5959 any time or email at rneuenschwander@myhst.com.