Is COBRA Insurance Right For You?

WHAT IS COBRA INSURANCE COBRA insurance, short for the Consolidated Omnibus Budget Reconciliation Act, is a law – not an insurance policy- that was passed in 1986 to protect employees and their families from suddenly losing health insurance. Under the law, people have the option to continue to use their exact health plan after voluntary or involuntary job loss for up to 18 months. COBRA coverage also protects family members in the event of death, divorce, loss of dependent status, or Medicare qualification. IS COBRA RIGHT FOR YOU? START HERE TO FIND THE BEST INSURANCE OPTION I was let go due to gross misconduct I have been unemployed for less than 60 days YES NO I am 65 years I quit, retired, or was laid off YES NO old or older NO NO You are not elegible for COBRA NO YES My income is at or below the federal poverty line NO My company has at least 20 full time employees Medicare is likely the best option for you YES NO YES Government insurance is likely the best option for you I have a preexisting condition or have been denied You likely qualify for CÓBRA insurance before YES Consider preexisting condition insurance plans NO I have a preexisting condition, serious medi- cal needs, or my family plans on having a baby COBRA insurance is likely your best option A private individual or family insurance plan is likely best for you I frequently use my medical in- surance (doctors, prescriptions, etc.) YES RRAAAR YES Consider a catastrophic, or high deductible plan to NO NO NO YES A private individual or family insurance plan is likely best for you YES I want to save money and l'am willing to sacrifice coverage save money I am currently taking expensive prescription YES YES NO NO YES I have been (or likely will be) denied for private insurance I want to save money and l'am willing to sacrifice coverage I want full coverage insurance that is less expensive than COBRA NO NO HISTORY OF COBRA 1986 2010 1997 2009 Consolidated Omnibus 2001 COBRA insurance Budget Reconciliation Act, COBRA for short, is subsidy passed in the ARRA Act ends after passed allowing people to The California Continuation The American Recovery three extensions The District of Columbia Benefits Replacement Act of 1997 is passed creating Cal-COBRA, one of the first state run COBRA programs. Many other states follow. continue their health and Reinvestment Act of passes the Continuation of Health Coverage Act creating it's own COBRA plan for residents. 2009 is passed creating a COBRA insurance subsidy insurance after job loss. which covered 65% of the cost of COBRA COST COMPARISON CHART: WHO IS ELIGIBLE FOR COBRA? $1,084 $420 $180 QUALIFIED COVERAGE QUALIFYING EVENT BENEFICIARY LENGTH Termination (for reasons other than gross misconduct) or 18 months* $600 $231 $100 reduction in hours of employment Cobra Insurance Private Insurance Catastrophic Insurance Employee enrollment in 36 months Medicare Individual Family Divorce or legal separation 36 months COBRA INSURANCE AND ALTERNATIVES Death of employee 36 months Monthly Yearly Loss of "dependent child" status under the plan 36 months COBRA $600 $1,084 $7,200 $13,000 *Under the qualifying beneficiaries requirement, some people may be entitled to 11 months of additional coverage due to disability extension or a second qualifying event. Individual or Family Health Insurance $231 $420 $2,772 $5,040 Catastrophic Insurance $100 $180 $1,200 $2,160 Short Term Health Insurance $120 $216 $1,440 $2,592 High Deductible Health Insuran $51 $92 $612 $1,104 STATES WITH THEIR OWN COBRA PLANS: * Based on a healthy individual or family in 2012. The plan you choose will likely vary from this based on age, gender, health status, location, as well as chosen co-payments, deductibles, etc. CALCULATING THE COST OF COBRA Your former Your monthly health insurance 2% monthly employer's monthly health + TOTAL COST of COBRA admin COBRA Insurance contribution while insurance fee employed contribution COBRAINSURANCEDIRECT health insurance solutions For more information please visit www.cobrainsurancedirect.com © 2012 COBRA Insurance Direct