Why is my COBRA premium so expensive?
COBRA Insurance Is Expensive Because You Pay The Entire Premium
The cost of COBRA insurance is high because you are now paying the full health insurance premium, including the portion your previous employer was paying. Often times there is an additional 2% administration fee for an insurance third-party administrator for processing the COBRA paperwork.
COBRA Health Insurance Cost
According the Affordable Care Act, employers are required to offer a qualified health insurance plan to their full time employees. Each employer determines their subsidy. When you are on COBRA you are paying the full amount for the plan. Often times this is $400 – 500 per individual.
Individual Major Medical Insurance
Both the federal health insurance marketplace and private marketplaces offer traditional major medical plans. These plans are similar to an employers group health insurance benefit. This type of insurance covers pre-existing conditions as well as copays for prescription medicine.
More Affordable Than COBRA
If you are fairly healthy and still want to remain insured, alternatives to COBRA insurance may be available based on where you live. Short-term health insurance is a popular option and available in most States. This can protect you from high medical costs of new injuries or new illnesses that unexpectedly occur while allowing you to use any licensed doctor. Coverage is available up to $1 million per person. For more information and pricing, you can call us at 1-877-262-7241 or complete a free quote online.