Unemployment and COBRA Health Coverage
Do you worry about losing your job within the next year? Considering the current state of the economy, you may have trouble sleeping knowing that you could potentially face severe costs for medical bills and doctor appointments. In fact, a recent study by Harvard found that health costs are the leading cause of bankruptcy.
Planning for the Worst with COBRA Health Insurance
By considering the future during open enrollment, should you lose your job, you will at least have the coverage you need while you are out looking for work. In fact, the safest way to ensure you have the best possible coverage is to shop around for a cheaper plan that works best for you in times of economic strife. Of course, if you become unemployed, then COBRA can always serve as a backup plan.
What Coverage Does COBRA Provide?
COBRA is a federal law that requires employers to offer 18 months of the same health insurance that was provided that you had while you worked for them. This law was passed in 1986 in order to make sure that Americans had the option of staying with the same plan that was provided by their employer until they find a plan that suits them better and are approved for coverage.
COBRA does take a little bit of the stress out of losing your job and it also provides the financial assistance that you need in the event of a major illness or accident while out of work. Still, planning ahead, you can potentially find a number of plans that will save you hundreds of dollars in premiums. These "alternatives" to COBRA are readily available on the market, and by looking into these options you can feel safe knowing that you have all of your bases covered.