COBRA Unemployment Insurance is a form of health insurance that allows employees who have been released from their company to maintain temporary coverage. This coverage period can range from 18 months to 36 months, but typical coverage is for 18 months. COBRA, or the Consolidation Omnibus Budget Reconciliation Act, was enacted in 1986 to ensure that employers would allow former employees to access health care coverage while in transition to a new workplace. This has been long hailed as a vital safety-net for unemployed workers, but there are times when private insurance can be a better option. Compare rates today to determine if there is a better plan for you.
COBRA covers the worker and any spouse and/or dependents who were listed on the policy while active at the company. In conjunction with state Unemployment Insurance, COBRA can ease the transition from one workplace to another. In some cases, COBRA insurance can be too large of a financial burden while on the reduced income of Unemployment Insurance. By comparing health insurance rates from private health insurance providers, workers in transition can work to keep costs down and coverage consistent.
There are many aspects that are included in the COBRA insurance plan. This includes hospital and physician care, as well as outpatient treatments that occur within the hospital environment. Aspects that are not included in the program are prolonged hospital admissions, surgery, as well as prescription drugs. Depending on the specific program, dental and life insurance may be included in the program. What’s covered and what’s not is important to know because while on Unemployment Insurance, your reduced income may not support unforeseen medical expenses.
While the passing of the Consolidation Omnibus Budget Reconciliation Act was an important step in protecting the right of a terminated employee to receive continuous health insurance benefits, often premiums can skyrocket to an unsustainable amount once the employer contribution ends. In these cases, private citizens are welcome to shop rates through multiple providers to try and find the right balance of coverage and premium.