Hey guys its Alex, I’m an insurance broker and today I’ll be talking to you about what is COBRA?
COBRA, which is short for the Consolidated Omnibus Budget Reconciliation Act. Most commonly refers to the health insurance that you get when you leave a job.
Typically, what that means is you can keep the same health insurance that you had at your job but lucky you, you get to pay full price for it. So, in most cases when you are working at a company they are subsiding or helping pay for about 50-60% depending on where you work. And when you leave the company, the company no longer helps pay for their portion, so the cost normally goes up.
In most cases, unless there is a compelling reason to keep COBRA either due to some medical issue or you’ve already met your out of pocket maximum or something, COBRA can be a huge financial mistake. There are plenty of more affordable choices out there. One being through the health insurance marketplace with individual health plans, and the other choice being short term medical plans. Either of which can save you hundreds or even thousands of dollars per month.
If you have any questions on that feel free to call us at our office at (210) 469-3900 FutureWise Insurance.
Join our newsletter for monthly updates, tips, and enrollment reminders!