There are a couple scenarios to consider when comparing COBRA and individual health insurance plans. Pre-existing conditions, individual plan subsidies, age and health of the individuals are all different things to consider when comparing both plans.
COBRA, The Consolidated Omnibus Budget Reconciliation Act, gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan. You can keep these benefits for a limited period of time under circumstances including job loss, reduction in working hours, transitions between jobs, death, and divorce. The problem with COBRA has always been the expense. You pay for a high premium. You also pay both employee and the employer portion of your employer sponsored health insurance premium. The average cost of COBRA per month is anywhere from $350 to $800 per month while individual policies can vary between $200 and $600 a month.
Before health care reform, individual health plans varied widely in what they covered, and insurers could deny your application for insurance or boost your premiums if you had a health condition. Health insurers have to cover you regardless of your medical history. Individual health insurance offers a variety of plans. This includes:
- Catastrophic - These plans generally have high deductibles ($6,850) and pay less than 60 percent of your health care costs. Only people under age 30 or who have a financial hardship can purchase a catastrophic plan.
- Bronze - Pays 60 percent of your health care costs. You pay 40 percent.
- Silver - Pays 70 percent of your health care costs. You pay 30 percent.
- Gold - Pays 80 percent of your health care costs. You pay 20 percent.
- Platinum - Pays 90 percent of your health care costs. You pay 10 percent.
Be sure to contact Cosmo Insurance Agency and we can help simplify the health insurance process. Our knowledgeable brokers know the ins and outs of the health insurance marketplace and will help you pick the best plan for you.
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