Understand Your Health Insurance Options
Contrary to popular belief, COBRA isn't the only option for health insurance after job loss. Depending on age, health situation, budget, and more - COBRA may or may not be the best decision for you and your family. Although you are the only one who can fully determine what the makes sense for your family, here are some guidelines to consider to determine what the best option may be for you. COBRA Insurance Alternatives
COBRA Insurance is best for:
- People with preexisting conditions without a new plan and who don't qualify for PCIP insurance
- People who already have a new job lined up with insurance, looking for a very short term solution
- People over the age of 50 with ongoing or likely health needs
- People who are, or plan to become, pregnant or with pregnant spouses
- Anyone who applied and was denied coverage with a new plan
- People who have been in a recent accident
- People who use expensive prescription medications
- People with a history or health problems
- Anyone who can afford the premiums and doesn't want any change to their coverage
COBRA alternatives are best for:
- People who want to save money on premiums
- People who can not afford COBRA premiums
- Are generally healthy without preexisting conditions or serious medical needs
- People who are young and healthy
- Anyone who qualifies for a spouse's or parent's plan
- Anyone who qualifies for a government sponsored plan
- People who do not have plans for medical treatment/procedures in the near future
- Anyone who does not need ongoing medical care and just wants emergency coverage
- Anyone who hardly ever uses their insurance plan or visits the doctor
COBRA Insurance Alternatives
No matter what your situation, we always recommend that everyone explore their options outside of COBRA insurance. This way you are sure that you know all of your options, the price of each, and what type of coverage it includes. When considering alternatives, these are some of the most popular alternatives to investigate.
These plans are best suited for individuals looking for a full coverage HMO or PPO plan that provides comprehensive coverage. They are available at a variety of price points and with varying levels of coverage.
This type of plan is best for families who want comprehensive coverage through an HMO or PPO that includes all ongoing, preventive, and emergency care. These plans are most similar to employer sponsored plans.
These plans offer exactly what the name suggests - short term coverage - from one day to one year in most cases. They normally only cover emergencies and have a very high deductible. The benefit of these plans is that they are very inexpensive and can be cancelled at any time.
These plans, sometimes called emergency plans, have high deductibles and are only meant to cover medical emergencies. In most cases they are extremely affordable, but they have high deductibles.
Like the name suggests, these plans have a very high deductible before coverage will kick in. For that reason they are able to offer very low cost premiums but you will pay most ongoing medical needs out of pocket.
For people with preexisting conditions, these plans can provide lower cost insurance than COBRA and will cover your condition. There are requirements at the state/federal level to qualify but premiums are less expensive than private plans and COBRA normally.