COBRA Insurance Information

COBRA Insurance is otherwise known by its longer name, the Consolidated Omnibus Budget Reconciliation Act (COBRA), implemented in 1985. This act requires most employers with group health plans to offer their employees the opportunity to take over their health plan in the event of a termination, layoff, or other miscellaneous change in employment status that fits under “qualifying events”.

These qualifying events refer to death of an employee (meaning their family could still carry on with the coverage in the event of a catastrophe), a termination for reasons other than gross misconduct, a large reduction of hours, or the divorce of an employee’s spouse during coverage (meaning that a currently employed person has their significant other divorce – that person then wishes to continue health coverage).

Under these conditions, the people eligible for COBRA Insurance are either the employee, their spouse or a dependent child. So, it is within these guidelines that a person might consider or wish to look into continuing with COBRA Insurance in light of unfortunate events.

COBRA Health Insurance Alternatives

Although a nice option, COBRA is frequently a non cost-effective choices that costs the unemployed more than they can afford in the event of a layoff (the most frequent occurrence). It is because of this condition that people look towards temporary health insurance such as those offered by to better cover their needs for short term, less-than-permanent policies.

Short term health insurance allows consumers in transition to shift out of their policy into a temporary plan that gives them safety in the case of a catastrophic event, but also does not force them into the COBRA conditions or otherwise, force them to support a company in conjunction with their employer, which is often a mental barrier that some would like to completely disattach from.

For some, COBRA does make sense, and an attractive health plan with affordable rates is possible. However, it’s not always the case. Weigh your options appropriately – we suggest you compare other health plan providers on, weigh the price differences, and then make the best provider choice for yourself and your family.

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