In addition to job losses, the nation's GDP has fallen the most 26 years.2 And unemployment is expected to be as high as 12 percent by 2010.3
Find more about COBRA alternatives and plan information now >>
Unemployment and Health Insurance Coverage
All of these dismal numbers may leave you wondering: How will people receive health coverage without a job? The new administration has tackled this challenge by immediately instituting a COBRA stimulus plan, which will subsidize 65% of the monthly COBRA premium.
What is COBRA?
COBRA is a 23-year-old law that allows employees who are laid off to continue receiving health insurance coverage. Unfortunately, the rapid rise in health insurance premiums has made COBRA extremely unaffordable.
The recent stimulus plan, signed into law by President Obama on Feb 17, 2009 allows individuals to lower their COBRA costs, but the costs may still be substantial for families that are trying to live on unemployment benefits. Even with the stimulus plan, your COBRA coverage will average about one-third of your unemployment check.
Are there Cheaper Alternatives to COBRA?
If you've moved to part-time work, retired early, or moved into freelancing, then a COBRA plan is probably not your best option, simply because the stimulus package only allows for involuntary termination. Even if you were involuntarily terminated from your job, you may be able to find better rates in the private market by opting for a high-deductible health plan or health savings account. These types of health insurance plans also include tax benefits.
Request a quote for an alternative to COBRA today >>
1 http://www.jobjournal.com/thisweek.asp?artid=2593
2 http://www.bloomberg.com/apps/news?pid=20601087&sid=aKMkV532Xkq0&refer=home
3 http://www.slate.com/id/2212594/