| If you are recently out of work, finding cheap | | | | Health Research & Educational Trust, in 2008 |
| health insurance is likely one of your top priorities. | | | | the average annual premium for employer |
| The great news is that under COBRA you can | | | | sponsored health plans was $4,707 (or $392 per |
| stay on the health insurance plan that you had | | | | month) for individuals and $12,680 (or $1,057 per |
| with your employer for 18 months. Now, the | | | | month) for families. |
| question is what will it cost you? | | | | Good news! |
| The cost of COBRA will depend on the state you | | | | Finding cheap health insurance may not be easy, |
| live in and the type of health plan your former | | | | but with the passage of the American Recovery |
| employer offered. | | | | and Reinvestment Act in February 2009, there is |
| When working, your employer will generally pay | | | | now a subsidy that offsets 65% of the cost of |
| some portion of your health coverage cost as | | | | COBRA insurance premiums. |
| part of your "benefits package." Effectively, the | | | | In addition to the COBRA subsidy, some |
| company subsidizes a portion of the health | | | | companies may subsidize a portion of your |
| insurance premium. The amount that a company | | | | COBRA costs as part of your separation |
| will contribute depends on the type of health | | | | agreement. If you are already out of work and |
| coverage offered, but averages around 75% of | | | | paying for COBRA, contact the human resources |
| the premium, with the remainder of the cost | | | | person at your former employer to see if they |
| coming out of your paycheck. | | | | have made any changes to the policies. |
| As a large organization, your employer gets a | | | | Reminder |
| volume discount when purchasing what is referred | | | | COBRA is retroactive. If you choose not to sign |
| to as group insurance. In many cases, this group | | | | up for the COBRA at the time of your departure, |
| insurance is less expensive than what it would | | | | you still have a 60 day window to enroll. If you |
| cost you to purchase health insurance on your | | | | allow time to pass between the date of your |
| own. | | | | departure and the time you make the decision to |
| Under COBRA, you benefit from being able to | | | | sign up for COBRA, you will have to pay for the |
| continue on the group insurance plan at the group | | | | time period that has elapsed, but you will also be |
| rate, but you are required to fund 100% of this | | | | covered by the insurance for medical costs |
| cost, plus 2% for administrative fees. | | | | incurred over this time. |
| According to the Kaiser Family Foundation and the | | | | |