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I Left My Job And COBRA Is Too Expensive – Why? And What Should I Do?

If you’ve recently left your job and you have been thinking about opting into COBRA coverage, you may have been left in a nasty shock when you saw the monthly premium you would be expected to pay for your old corporate insurance plan.

Why is COBRA so expensive? Do you have to sign up for it? Are there other options like catastrophic insurance coverage? Find out all the answers in this blog now.

What Is COBRA?

COBRA is short for the Consolidated Omnibus Budget Reconciliation Act. This is a piece of legislation that gives employees and their families the option to keep their old health insurance coverage in case of a job loss for a limited time – usually up to 18 or 36 months.

This can be a good thing when you’re in-between jobs and need to sign up for healthcare coverage, and you like your old plan. But there’s a catch – COBRA plans are usually extremely expensive.

Why Is COBRA So Expensive?

The cost of COBRA is so high because when you become unemployed and sign up for COBRA, you are paying for the entire cost of your insurance. This is not the case when you’re employed by a company.

When you’re employed and on the company’s group health plan, your employer pays for part of your health insurance premiums – and this can be up to 80% of your premium, in some cases.

So if you were paying $250 for your coverage, but your employer also paid $250 in premiums, you were only really paying for half of your coverage – and the premium you’ll see when you get your COBRA letter will likely be at least $500.

Can I Get Cheaper Healthcare Instead Of COBRA?

Yes, and this is particularly true if you are young and healthy. One option that many people choose is a “catastrophic health insurance” plan. This type of plan has very high deductibles and out-of-pocket maximums and does not cover that much routine health care.

However, it also has a very low monthly premium. The idea is that, in case of a serious or “catastrophic” accident or health issue, you can get the coverage you need with this type of policy – but you will still pay a lower price per month, since you don’t use a lot of health services.

If you have left your job and COBRA is too expensive, this may be a good choice. A private health insurance broker like My Private Health Insurance can help you explore your options in further detail, and find a plan that works for your budget.

Contact My Private Health Insurance To Find The Coverage You Need!

If you were considering COBRA insurance, but the cost of enrolling is far too high, you may not be sure what to do. At My Private Health Insurance, we can help you find the alternatives you need.

Our team of health insurance brokers can help you find a cheaper plan – such as catastrophic coverage – and make sure you get the insurance you need to protect your health and well-being as you search for a new job. Contact us online or give us a call at 754-206-9583 to get started today.