Cobra Alternatives

Cobra Alternatives for the Unemployed and Uninsured

If you're recently unemployed and therefore uninsured, the loss of your health insurance can be one of the most stressful items to contend with. Out-of-pocket medical expenses can quickly add up and cut into your monthly budget - it's no wonder there is such a high rate of medical-related bankruptcies in the U.S.

By law, you have 60 days to retain COBRA coverage and can keep it for up to 18 months. While COBRA allows you to keep your former coverage with no limitations, it also:

• Requires you to pay 100% of the premiums - a difficult task for the unemployed
• Is temporary and can't be tailored for your health or budgetary needs

Upon the loss of health insurance, it's important to realistically assess your health care needs and then review all the options. While many young Americans think they are healthy and don't need coverage, keeping in mind that staying completely uninsured can be risky for your financial and physical future.

Facing the Loss of Health Insurance: Looking Beyond COBRA

While COBRA is feasible for some unemployed and uninsured Americans, it simply isn't an option for others. If you find yourself in the latter group, remember that there are a variety of other short-term and long-term options. Alternatives to COBRA include:

• Discount Plans: While not insurance, health care discount membership programs are another way to supplement the loss of health insurance or just limit your out-of-pocket costs.
• Scheduled Indemnity Plan: Also called fee for service, these plans, like the Reassurance Health Plus and Ultimate plans, pay a fixed percentage for any doctor's visit, hospital stay, etc.
• Managed Care Plans: This type of plan includes HMOs, PPOs and POS plans, and is the most common type of insurance offered through employers. However, while non-group plans are available, they are very costly and often require high deductibles.
• Self Insurance: While this technically means an individual will set aside an estimate amount of money to pay for medical expenses - something difficult to do for the unemployed - it basically means going without health insurance.

Before you make a choice, but sure to get all the facts on COBRA and other health insurance alternatives.

Related Links
Six Coverage Alternatives
Cobra Alternatives