Straight talk about COBRA and COBRA alternatives

Choosing the right health insurance during a stressful time can be difficult. Whether the potential loss of coverage comes because of a layoff, medical issue, divorce or other issue, this decision can be crucial to your health and financial well-being.

COBRA provides the best coverage but at a high price. Savings may be achieved through a COBRA alternative insurance but only under specific circumstances.

This Web page highlights the information you need to know to get started in making the best decision. The listing is shown in brief bullet format to provide a fast and easy understanding of the key issues. For more detailed information please see the Questions section.

COBRA coverage may be the best choice when:

• the employer has 20 or more employees
• termination of group insurance is due to a layoff or divorce
• the layoff occurred between October 1, 2008 and December 31, 2009 and you are eligible for a premium reduction
• you are a middle income earner
• you or a family member have ongoing medical issues
• any family member is pregnant

Specific information about COBRA, including eligibility, pricing, coverage and enrollment, is available "offline" directly from the employer's health plan administrator.

COBRA alternative coverage may be best choice when:

• the employer (or former employer) sponsoring the health pan has fewer than 20 employees
• group health insurance is not provided by the employer
• the employer elects to terminate group health insurance for all employees
• the cause of work termination is classified as "gross misconduct"
• the employer terminates a health plan
• the employer goes bankrupt
• COBRA benefits are exhausted (usually after 18 months)
• COBRA benefits are unaffordable
• your income is either at the low range or the upper levels. In either case, these individuals tend to prefer insurance other than COBRA. 
• you are moving to a new residence where the employer health plan does not operate
• you become eligible for Medicare
• your past income makes state-sponsored welfare-type health insurance available

 

Key differences* in types of gap insurance:

• COBRA insurance covers pre-existing medical conditions, COBRA alternatives do not.
• COBRA coverage is expensive, COBRA alternatives are not.
• COBRA coverage is held by strict regulation, COBRA alternatives are widely varied
• COBRA is handled "offline", COBRA alternatives are handled "online".

* This chart is intentionally over-simplified to provide a general understanding and starting point for research. Details and clarifications are provided elsewhere on this site and from the other references listed.

Information about COBRA alternatives, including available plans, prices, eligibility and enrollment, is available at OnlineAdviser short term medical insurance quote engine.

 

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COBRA or COBRA alterative gap insurance coverage provides temporary protection when changing jobs, going through a divorce or negotiating other life transitions. Choosing the right health insurance is crucial to guarantee health and financial security.

This site is sponsored by OnlineAdviser service providing plan selection and enrollment support for over 30 of the most affordable short term  health insurance plans.