| What Is COBRA? | | | | health insurers, and they may offer low rates to |
| COBRA is NOT health insurance. It is, rather, a | | | | a fairly healthy family. |
| federal law that helps some terminated | | | | Before you switch from group to individual major |
| employees stay in their group plan for several | | | | medical, make sure you understand the difference |
| months. It can be critically important for some | | | | between the old and new policies. There are |
| families, and can work out well if the insured | | | | some circumstances, as with some preexisting |
| worker can find another job with group insurance | | | | conditions or pregnancy, that a private plan will |
| before the benefits run out. | | | | not be a good alternative. |
| However, this does not work out for everybody. | | | | High Risk Health Plans - Every US state has some |
| Here are some reasons why COBRA is not an | | | | plan or pool for people with pre-existing conditions. |
| unemployment medical plan choice for everybody. | | | | There are qualification rules, possible waiting |
| | | | periods, and sometimes there are high premiums |
| 1. Not all companies are under this mandate. Some | | | | though. Federal health reform is starting to make |
| companies never had a group plan in the first | | | | this easier and less expensive to obtain, but those |
| place. Others are too small to fall under the rules. | | | | changes are still being implemented. You should be |
| So terminated employees from these companies | | | | able to find out more by searching for the high |
| will not have his option for a major medical plan. | | | | risk health plan in your state. New Jersey has a |
| Some unemployed people do not have this option | | | | very different plan than Texas has, for example, |
| at all. | | | | so it is important to understand the local rules. |
| 2. When a terminated employee accepts an | | | | Low Income Health Plans - If you have a very |
| extension of their group medical plan under | | | | low income, you may be able to get the help you |
| COBRA rules, they will have to pay for it. In | | | | need from a private, federal, state, or county |
| many cases, they not only have to pay the | | | | health program. Medicaid is the federal major |
| premium they paid before, but they will also have | | | | medical plan for very low income people with few |
| to pay the old employer contribution. Many | | | | assets. CHIPS covers children from low to |
| terminated employees are shocked when they | | | | moderate income families. Many counties also |
| see that their premium will double or triple | | | | have health systems with sliding scales fees. |
| because the old company is not contributing any | | | | Private foundations may offer financial aid for |
| longer. So sometimes the premiums are just too | | | | specific health conditions. |
| expensive for unemployed people to pay! What | | | | You can find out more about your options by |
| are some unemployment health insurance | | | | looking for state or county resources. One good |
| alternatives? | | | | website is PPARX.org. It has a handy zip code |
| Unemployed people do have some alternatives. | | | | search for help in your area. |
| These alternatives can also be considered by | | | | How To Find Health Insurance Choices Where You |
| people who are working, but have jobs or | | | | Live |
| self-employment that does not have group | | | | You can find many zip code health insurance |
| medical benefits. | | | | quote forms. They will give you competitive |
| Individual Health Insurance Policies - Sometimes, if | | | | prices on major medical insurance, and will also |
| a family is fairly young and healthy, a private plan | | | | give you contact information for local agents who |
| may actually be a less expensive way to find | | | | should know the ropes, as they say, in your city |
| coverage. Policies are individually underwritten by | | | | or town. |