COBRA Insurance and Low Cost Alternatives in Colorado

COBRA Insurance and Low Cost Alternatives in Colorado

If you have lost your job, whether voluntarily or not, or your hours have been reduced, you may feel your health insurance is at risk. This is where COBRA health insurance comes in, because it helps to ensure you will have coverage between jobs. It’s important to know about COBRA insurance and low cost alternatives in Colorado, so that you can make the best choice for you and your family. The goal is to keep you with health care coverage during this period, but to also ensure it’s something you can afford.

How COBRA Insurance Works in Colorado

If you qualify for COBRA insurance, you can keep your health insurance plan, but you will pay for the full amount that it costs. COBRA costs 102% of what the health insurance costs, which will be the portion you were paying, any amount that your employer was paying, and an administrative fee. When people see the premiums they are often shocked and feel they are unaffordable.

There are alternatives to COBRA in Colorado, which will help people continue having health insurance, but will be much more affordable. Some of the other alternative options include:

• Short Term Insurance. This type of plan provides you with coverage that can last a month or up to a year. It helps fill in the gap in between jobs.   
• Indemnity. This type of health insurance, also called fee-for-service, will help you pay for the medical bills after you have met a deductible. You can go to whatever doctor you want and then submit the bills. 
• Association Plans. If you are a freelancer, self employed, or belong to some type of group, you may be able get to health insurance under an association plan. By all the people coming together they able to get more affordable rates.

COBRA Insurance in Colorado

Prior to 1985, when someone lost their job or had their hours cut it could lead to them losing their health insurance. This is when the federal government created the law called Consolidated Omnibus Budget Reconciliation Act (COBRA). The law allows people to keep their health insurance between jobs. There are some conditions that have to be met to qualify for it, but many people are eligible to continue getting their health insurance plan through COBRA.

In order to qualify for COBRA insurance in Colorado, you would need to have been working for a company that employs at least 20 people. The company would also need to have been providing you with health insurance. If you meet those qualifications then there is a good chance you can keep your health insurance plan through COBRA. It doesn’t matter if you quit your job, you were let go, or if your hours have been reduced.