Tuesday
COBRA Insurance - Is it Ideal?
More and more workers left their jobs to become self-employed. When employees leave their jobs they can continue with their health care coverage through COBRA (if they qualify) until they find the right health insurance for the Self-employed. COBRA is the continuation of insurance benefits mandated by the Consolidated Omnibus Budget Reconciliation Act. (COBRA), which was created by Congress to provide former employees the right to have temporary health coverage for themselves and their families.
Unfortunately, many former employees cannot continue their health insurance coverage through COBRA due to the expense. COBRA can cost up to $1500, per month or even higher. COBRA insurance is high because you have to carry the same coverage that you had before you left your job. Many employers pay up to half or even more of the insurance coverage when you are employed. When the COBRA subsidy started, former employees were required to pay 100 percent of their health coverage. Now, because of the recession, the ARRA (The American Recovery and Reinvestment Act) of 2009 has made it a little easier for people who have involuntarily lost their jobs to keep their health insurance at a reduced price for up to 9 months. You may be able to keep this insurance by paying only 35 percent of the total premium cost.
In situations where the cost of COBRA is too expensive, you, as the small business owner might wish to shop around for health insurance as self-employed. You might even shop around and find personal coverage that may be more affordable than what you would have to pay through COBRA. Once you purchase a health insurance from an outside source, you would no longer be eligible for COBRA.
Not everyone who loses their job is eligible for COBRA benefits. If you worked for a company that went out of business, or the company had less than 20 employees, you wouldn't be eligible for health coverage through COBRA. If you don't qualify for COBRA, you might find it to your benefit to shop around for a good low cost health insurance for self-employed people. If you are in good health, you may be able to find affordable health insurance for self-employed people. Making the transition from being an employee to your own boss should not be more difficult than it has to be. With a little research online, you may be able to find insurance companies with competitive and affordable rates.
Simon_Bukai
