If you've been laid off this year thanks to the COVID-19 pandemic, you know you're not alone. The job market continues to crater, and far too many Americans wonder how they're going to get through th e holidays.
Losing your job is about more than losing income. The American healthcare system is employer-based, and losing your job means losing your coverage. There is COBRA, but for too many people COBRA premiums are far too expensive.
If you've lost your health coverage, don't worry. There are many great COBRA alternatives to choose from. This guide will help you find the coverage that's right for you.
In 1985, the Consolidated Omnibus Budget Reconciliation Act (COBRA) became law. This law says that anyone fired or laid-off from their job can continue to receive their health benefits for up to 18 months.
Sounds great, right? While COBRA is useful for so many, there are catches. COBRA insurance is only available to those who were employed by a company with over 20 employees.
If you lose your job and qualify for COBRA insurance, you must pay the full amount of the insurance plan. When you are laid off or fired, your employer is no longer responsible for paying the employer portion. This causes your premiums to skyrocket.
Though the opportunity to keep your current health insurance through COBRA is an option some people use, let's be real. Without a job, how can you expect to pay 100% of your plan?
COBRA works best for families with two incomes. If you're the sole provider for your family or a single parent, odds are you won't be able to afford the cost for very long.
Luckily there are alternatives to COBRA health insurance available at a much lower cost for you and your family.
The Affordable Care Act, known as Obamacare, became law in 2010. This health insurance marketplace offers citizens the ability to shop for private health insurance plans at different levels of coverage.