COBRA Vs. Individual Health Insurance
National Health Care Coalition studies tell us that eighty percent of Americans without health insurance are working class families. In 2006, more than 90 percent of Americans or nearly five million people, were without any health insurance at all for at least part of the year. In 2009 unemployment is much higher and so is that number!
Some of those people who lost their jobs are eligible for COBRA benefits from their former employer’s health plan. Unfortunately, many others are not. Even many of those covered under COBRA cannot afford the coverage. The reason is that under COBRA, as a former employee who is no longer receiving benefits, they will pay the entire premium amount, that is, the portion of the premium that they paid as a regular employee plus the amount of the contribution that was paid by their employer. In addition, there may be a 2 percent administrative fee.
For people who aren’t working there are affordable health insurance plans available on the internet. By shopping online you’ll find low internet rates and won’t have interact with a highly paid commissioned agent. For more information, see COBRA Insurance Alternatives.
