A Look into COBRA, The Pro's And Con's, As Well As Affordability
Welcome to the latest installment of the Weekly Health Insurance News Roundup. In this installment we will look at several articles that deal with COBRA (the Consolidated Omnibus Budget Reconciliation Act), which if you're unaware gives laid off workers a chance to extend their health insurance benefits for several months after losing their jobs. While many people use COBRA, it has come under fire for being too expensive, the government seems to be taking steps to make it more affordable, which we will look at in a moment.
First off, however, we will look at an article entitled, "The pros and cons of COBRA health insurance," the people at KTNV in Las Vegas take a look at some of the ups and downs of this particular health insurance plan. The first limitation they list of COBRA is that coverage only lasts for 18 months after losing a job, which might be inadequate for those with chronic health issues. They also say that COBRA is decidedly expensive, and say that, for a healthy person, searching for an individual health insurance plan from a private insurance company might be cheaper.
On the upside, however, the article does say that those with pre-existing health conditions might do better with COBRA due to a wider acceptance into the health plan. Those with pre-existing conditions might be put into a high-risk pool among private insurance companies, making insurance either more expensive or impossible to get altogether. When COBRA runs out, you also have only 63 days to acquire new insurance, making things even more time sensitive. Overall, the article says that regardless of which type of coverage you get after being laid off, don't let it lapse or it could be harder to acquire coverage in the future.
The next article comes from TheStreet.com and is entitled, "Cheaper COBRA Isn't Always the Best Option." In this article, they look at how, under a newly proposed stimulus package from the Obama administration, those laid off between certain dates get a 65% subsidy for COBRA health insurance coverage. This will make COBRA more affordable, but according to the article, it won't make COBRA the best option for your affordable health insurance needs. The article states that other plans from private health insurance companies might be more flexible and last longer, since COBRA only lasts for a fixed amount of time. It's important to keep factors such as this in mind when shopping around for your own health insurance coverage.
Our final article, entitled, "COBRA Health Insurance To Be More Affordable," comes to us from WTAE in Pittsburgh, and gives a little more detail about the COBRA subsidy found in the proposed stimulus package. The article states that this is to help those who have pre-existing conditions and keep the insurance they have with doctors they know. While details on how to sign up for this subsidy plan aren't yet known, it's good that steps are being taken to help those who need coverage and are having a hard time affording it.
This concludes this edition of the Weekly Health Insurance Roundup. I hope you have found it informative and interesting, and until next time, have a happy and healthy day.
