Four Alternatives To COBRA that can Save you Money


COBRA is short for Consolidated Omnibus Budget Reconciliation Act. It is a health insurance plan that allows people in between jobs to keep the coverage they enjoyed while working with their employers. The COBRA plan allows such persons to stay on the same plan for a minimum of 18 months, although they'd have to cover the entire monthly premium themselves. 

Unfortunately, the burden of covering the full monthly premium for such a long time could be too much to bear for many working-class persons. That's why it's vital to understand that there's no law that compelling people in between jobs to opt for COBRA. If the cost of your monthly premiums will put a heavy burden on your finances, there are many other affordable alternatives you can explore. Below are a few of the available options: 

Short-Term Health Insurance 

This alternative is quite affordable. It is also quick to get since the application and approval processes are relatively easy and fast. It takes less than a minute to get an online quote, and once approved, the coverage starts within 24 hours of the application. You also have unlimited access to short-term health insurance as you can apply whenever you want to.

There are downsides, though. You are not eligible for short-term health insurance if you have a pre-existing condition. It also quite short (one month less than a year), and it may not cover maternity care or mental health services.

ACA Marketplace Health Insurance 

The Affordable Care Act (ACA) allows for legally living people in the United States to access health insurance as long as they are not locked up in prison. In some cases, you might be able to offset or significantly reduce your ACA premiums using government funds given to you. You can get this aid by requesting financial assistance when applying during the registration window or applying for financial help if you go through life-altering events. One downside is that you need an income between 100% and 400% of the federal poverty line to be eligible. 

Independent Health Insurance 

This option is something of a middle ground for those who can't meet the ACA plan's financial requirements but are willing to enjoy a more comprehensive plan than the short-term plan. With independent health insurance plans, you can access more affordable policies than COBRA insurance while offering relatively great coverage. The insurance policies' length depends on how long you need coverage and the plans that the insurer offers. 

High-Deductible Health Insurance                                                    

With a high-deductible plan, you enjoy a measure of flexibility that none of the other options offer. It shields you from expensive health costs, and you could get health savings to account to get the most of this alternative. However, the flexibility comes at a cost though(no pun intended). You will be required to pay many up-front health care costs before the insurance company begins to pay for coverage.

If you wish to know more about alternatives to Cobra, do not hesitate to get in touch with our expert insurance brokers. We are always on hand to attend to all your insurance-related questions, and you can trust us for the best coverage advice. 

Alternatives To Cobra
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