In simple terms, a COBRA health insurance is a short-term continuation of the exact same group health plan you had with your employer prior to termination from that job. So, if you liked the coverage provided by the plan prior to termination, you will still like the coverage provided by the plan under COBRA administration because it is the same plan.
What you may not like is the cost under COBRA administration. Many people incorrectly assume that COBRA rates are excessively higher than the rates you paid while employed. This is incorrect. By law, your insurance rates under COBRA cannot exceed 102% of the rate you were paying before termination.
So, why does the COBRA premium seem so much higher than the premium prior to termination? The answer is your employer's contribution to your health insurance. While you were employed, your employer was definitely paying a portion of yours, the employee's, health insurance premium. If you worked for a "benefits rich" employer, they may have been paying all your premium and even contributing some to your dependents' coverage. Under COBRA, the employer no longer is responsible to contribute anything to your health insurance premium. You are therefore responsible for 100% of your portion of the premium as well as that of your dependents. That is why the COBRA cost is more than you were seeing while employed.
So, the real question then becomes is it cheaper for me to continue with my current group health plan under COBRA, or is there a better alternative in the personal health insurance marketplace. The only way to answer that question is to solicit quotes from personal health insurers.
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What you may not like is the cost under COBRA administration. Many people incorrectly assume that COBRA rates are excessively higher than the rates you paid while employed. This is incorrect. By law, your insurance rates under COBRA cannot exceed 102% of the rate you were paying before termination.
So, why does the COBRA premium seem so much higher than the premium prior to termination? The answer is your employer's contribution to your health insurance. While you were employed, your employer was definitely paying a portion of yours, the employee's, health insurance premium. If you worked for a "benefits rich" employer, they may have been paying all your premium and even contributing some to your dependents' coverage. Under COBRA, the employer no longer is responsible to contribute anything to your health insurance premium. You are therefore responsible for 100% of your portion of the premium as well as that of your dependents. That is why the COBRA cost is more than you were seeing while employed.
So, the real question then becomes is it cheaper for me to continue with my current group health plan under COBRA, or is there a better alternative in the personal health insurance marketplace. The only way to answer that question is to solicit quotes from personal health insurers.