How to Know If You Can Afford Cobra Insurance

If you have recently lost your job or are unemployed, it is important to understand COBRA insurance and know if you can afford it. Learn simple steps to determine if you can afford COBRA insurance before you go through the long process involved in getting COBRA.

Difficulty: Easy

Instructions

1. Find Out the Cost of the Insurance Premium At Your Former Workplace
   The first thing you need to do to know if you can afford COBRA insurance is to find out what the premium cost was at your last place of employment. COBRA insurance is based off that amount. Without any government assistance, COBRA insurance will be that premium cost plus a 2% administration fee if you do not change your coverage at all. For extended COBRA insurance coverage you may have to pay up to 150% of the premium.

2. Factoring in the Government COBRA Insurance Subsidy
   Based on current economic conditions, the government passed a bill that will cover 65% of your COBRA insurance costs. Therefore, to know if you can afford COBRA insurance after the government subsidy subtract 65% of the cost. There is a link at the bottom for how to sign up for this subsidy.

3. Find an Alternate Plan if You Can't Afford COBRA Insurance
   If you learn that you can not afford COBRA insurance after calculating the cost, you have alternate insurance options. EHealthinsurance is a great place to learn about alternate insurance care including catastrophic coverage and emergency only coverage if you find you can't afford COBRA insurance.

Tips & Warnings

• Take advantage of the government subsidy to keep you and your family insured!

Resources

• How to Apply For COBRA Insurance and Subsidy