Lauren Mandel
The Consolidated Omnibus Budget Reconciliation Act (COBRA) was passed by Congress in 1986 to help individuals and their families to obtain temporary health insurance. Under COBRA, individuals and their dependents can choose to remain on their current health plans for a specific time period, payment of their premiums in full and on time until they find a new job or a new method for the cover.
For years, COBRA has served as a valuable tool for those who find themselves without insurance covered illness. But now, almost 30 years later with the Affordable Care Act (ACA) in place, private markets offer better coverage options that can be much less expensive than COBRA.
HOW tHE COBRA ACA CHANGED 
Before the ACA, COBRA coverage if made sense for people who were between jobs or could not afford health insurance regardless of their employer. But now the private market and subsidized health insurance are both available, and in many cases, enrollment in individual health insurance is much more affordable than COBRA.
COBRA is expensive for everyone
a person who chooses COBRA is generally required to pay their full monthly premium, plus an administrative fee of two percent. Employers usually pay part of the premium for their employees, so for a person who may have just lost their jobs, pay their full premium plus a fee out of pocket can be difficult or impossible. Data from the Congressional Research Service, the average cost of COBRA participant can be 54 percent higher than active employees, which means that once a person is unemployed and locked in COBRA, they could pay double they paid for health insurance as an employee. And an employer could save an average of $ 3,000 per year if their former employees purchase individual coverage than COBRA election. COBRA can be more expensive, not only for the individual but for their former employer, as well.
to private markets that offer COBRA You can not
The ACA requires that 10 Essential health benefits, including hospital stays, the maternity care and prescription drugs, be covered by private health insurance plans. However, under COBRA, there is no guarantee that these products and services will be covered. Therefore, if an individual is locked in a COBRA plan, becomes pregnant, and the plan does not cover maternity care, then they could be responsible for the costs of expensive health care.
Choosing to buy health insurance from a private exchange also means people may be eligible for federal tax subsidies to help lower monthly premiums. Tax subsidies are available on plans to buy health care exchanges for people who make between 100 and 400 percent of the federal poverty level. For an individual, it is between $ 11,770 and $ 47,080, according to the Internal Revenue Service. Under the ACA, about 84 percent of people who enrolled in private Medicare received a tax subsidy.
However, if covered by COBRA, the federal tax subsidies do not apply. Choosing register through COBRA instead of electing individual coverage through a private exchange could mean missed significant savings through financial assistance from the government. It is best to assess the tax subsidy eligibility before being locked into COBRA.
before finalizing COBRA
Under COBRA, it's easy to get locked into a plan that is not the right fit. With private market, individuals can view and compare thousands of different plans of the major carriers in their region. But with COBRA, they should continue on their current health plan, whatever life changes that have occurred.
changing health care needs
suddenly becoming unemployed or be increased from health coverage are both considered as life events qualification, which allow individuals to enroll in coverage outside of Open Enrollment. This is a great opportunity for individuals and their families to explore all options to find a new plan that meets their needs. Registration directly with COBRA means no chance to reverse the changes and health needs until the next open enrollment period.
It is also important to consider the changing health care needs. If a family plans to develop or a family member develops a serious medical condition, this could greatly affect this type of health plan they need. COBRA commit to mean no option to explore the different health plans from different carriers, which could mean losing a family on the discovery of a plan that best suits their specific situation.
long term versus short term
COBRA is a temporary solution, which means that individuals can not stay on a current level of 18 to 36 months , depending on their situation. COBRA is designed to support individuals until they find another blanket. Once COBRA runs out, the individual is responsible to find a new health insurance. Rather than anticipating that date, it is better to join a health plan choice through private exchange immediately when health insurance coverage is lost.
Individuals also can not change their mind and switch to individual health insurance plan once they 're registered under COBRA. Unless they have a qualifying event life, they are trapped in their COBRA plan until their coverage is exhausted or until the next open enrollment period begins. Again, it is best to consider if COBRA is the right option before committing
The private exchanges and a personalized experience
elect COBRA coverage simply means than:. Only a blanket. People who buy individual health plans through private exchanges like GoHealth can receive active assistance in their decision making and easy access to their options.
licensed insurance agents are available to help individuals and families find the right coverage and also answer all questions related to health insurance. Sites enable customers to view and compare thousands of large companies health plans in their region, plans which can be much more suited to their needs and financial situations than is available through COBRA.
In general, private exchange of health plans allow individuals the luxury of choice, savings, and comparison, while COBRA does not. Although COBRA can be an easy option, it may not be the best choice.
0 Komentar