Going without health insurance brings significant financial and health risks into your life. Luckily, even if you quit your job or get fired, COBRA allows you to continue accessing your employer’s group health insurance plan. Of course, the problem with this scenario is that you will often incur high expenses, because you’re now paying your previous employer’s part of the premium in addition to your own. Luckily, if you feel like COBRA coverage will be too expensive for you, there are some other alternatives.
- Utilize the state exchange. Losing your job (and health insurance coverage) qualifies you for a Special Enrollment Period through the state health insurance exchange. You might also qualify for a subsidy to help cover the cost of premiums.
- Independent health insurance. An independent health insurance policy can sometimes offer suitable coverage for lower premiums than COBRA. You can choose deductible and copayment plans that suit your needs, and this coverage can last as long as you need it.
- High deductible health insurance. These types of plans offer low monthly premiums, but the high deductible means you’re responsible for a considerable amount of medical bills before the insurance kicks in to cover the rest. If you choose this option, you will be eligible for a health savings account, which can offer significant tax benefits.
Sometimes just staying with COBRA is your best alternative. There is more to consider than just the cost of COBRA. Have you met your current plan’s deductible or out of pocket maximum? Do you have a surgery scheduled or need another service in the near future? This is why you should always contact a qualified insurance agent to discuss your particular situation and review the best options for you.
