What is COBRA health insurance?
COBRA is the acronym for Consolidated Omnibus Budget Reconciliation Act and was pass by the United States Congress passed in 1986.
The law amends the Employee Retirement Income Security Act, the Internal Revenue Code and the Public Health Service Act to provide continuation of group health coverage under certain conditions. These conditions give certain former employees, retirees, spouses former spouses, and dependent children the right to temporary continuation of health coverage at group rates.
The monthly rate for COBRA Group health coverage participants is usually significantly more expensive than health coverage for active employees. Most employers contribute to a portion of the health insurance premium for active employees. Whereas, COBRA health insurance participants generally have to pay the entire premium. COBRA health insurance premiums are generally substantially higher than private insurance.
It is common for people to find their COBRA health insurance cost three to four times the amount of their employer’s health insurance. Many times people are shocked to discover that ObamaCare health insurance can cost even more than COBRA health insurance premiums. When faced with confusion and high cost of health insurance premiums many people decide to forgo COBRA health insurance and ObamaCare. Some people may feel the high cost of COBRA or private health insurance will cause too much financial stress on their household budget.
Whereas, other people may feel that they are healthy and it is worth the risk of being uninsured. However, unless your household is already in complete financial ruin, health insurance is a necessity. Alarmingly, The department of Social Security Disability Insurance reports that one out of four working adults will become disabled before they are 67 years old. After reviewing this shocking SSDI statistic it is easy to understand why you need COBRA or some form of health insurance. The peace of mind of having health insurance seems priceless.