Colorado Health Insurance Expert Says There May be Better Alternatives to COBRA After Losing Employment
Colorado Springs, CO (PRWEB) April 26, 2007 -- Employees in Colorado who lose their jobs may want to consider an individual health insurance policy as an alternative to continuing their former employer's group policy through COBRA. "While the decision to participate in COBRA depends on multiple factors -- such as pre-existing conditions and the length of time someone will be out of work -- the cost of COBRA coverage is often surprising," according to Healthquotes.com founder Michael Horvat, who has over 28 years of experience as a Colorado health insurance broker. "Individual policies can be prohibitively expensive in some states; however, Colorado has very reasonable rates, making individual policies an attractive alternative to COBRA."
Introduction to COBRA
COBRA is often confused for a health insurance plan; however, it actually is an acronym for the Consolidated Omnibus Budget Reconciliation Act (COBRA). Congress passed this law in 1986 to provide certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. The law generally covers health plans maintained by 1) private-sector employers with 20 or more employees, 2) employee organizations, or 3) state or local governments. COBRA continuation coverage generally lasts for a maximum of 18 months.
The cost to continue group health coverage for COBRA participants is often significantly more expensive than the cost for active employees, who typically pay only a fraction of the insurance premium. COBRA participants, on the other hand, may be required to pay up to 102% of the premium costs.
Individual Health Policies
Individual health policies are an alternative to COBRA and fall under two categories: short term and permanent. In Colorado, inexpensive short term policies are available, particularly for someone who has no pre-existing conditions. These policies typically provide 90 days of coverage but can be extended up to 185, or in some cases, 365 days. Short term policies usually have more exclusions than COBRA coverage or permanent policies. This is why it is important to work with an experienced broker to understand how the details of each type of policy will impact the applicant's unique situation.
If a separated employee anticipates being out of work for a longer period of time or wants to investigate self employment, then a permanent individual policy may be a better option. These plans usually offer more comprehensive coverage than short term plans.
Final Considerations
COBRA coverage may be a reasonable option if a separated employee or family member has a pre-existing medical condition; however, it is important to speak with an experienced health insurance broker to see how much pre-existing conditions will impact the cost of an individual health policy. A good broker may still be able to obtain significant savings for separated employees with pre-existing conditions.
About Healthquotes.com
Healthquotes.com is a Colorado based health insurance broker. We provide free quotes for Individual Health Insurance which includes Major Medical, Preferred Provider Organizations (PPO), Health Maintenance Organizations (HMO), Group Health Insurance, Self Employed Health Insurance, Medicare Supplements, Long Term Care Insurance, Medical Savings Accounts, Disability Insurance, Life Insurance, and the following specialized plans: Student Health Insurance, International Health Insurance, Dental Insurance, and Short Term Health Insurance. Please visit our website at www.healthquotes.com.
Contact Information:
Michael Horvat
Healthquotes.com
1423 W. Colorado Ave.
Colorado Springs, CO
80904
Toll Free: (800)-345-0789
Phone: (719) 630-1515
Fax: (719) 630-1010
www.healthquotes.com
###
Related Articles:
Affordable Health Dental Insurance - Supplemental Dental Insurance Plan
There have been many instances whereby insurances that include dental care will fail to fully support the expenses incurred for dental care of a family These would tend to create financial problems as the family would have to spend their own money or even borrow just to cover for the expenses created by the dental care of a family member due to insufficiency of insurance coverage
NOS-Powered Motorbikes: Bikesure Offers Road-Legal Insurance Cover
If you want to go faster, fitting a nitrous oxide system (NOS) to your motorbike is a serious modification that delivers big in terms of power. But it's important that modifications like NOS are kept in the open so that they can be monitored for safety.
Students Not Always Covered in Home Insurance Policy, Says Only Insurance
New research has discovered that some home insurance policies don't cover students when they move away from home.
Business Insurance Now Teams Up With Philadelphia Insurance to Offer Colorado Insurance Brokers Coverage
As one of the most knowledgeable and extensive providers of small business insurance on the Internet, Business Insurance Now has currently teamed up with Philadelphia Insurance in order to provide coverage for all individual Colorado insurance brokers.
Business Insurance Now Announces Professional Liability Insurance Exclusively for Tax Preparers
Holding strong as the top source of elite and innovative small business insurance on the Web, Business Insurance Now has newly announced Professional Liability Insurance designed exclusively for tax preparers, allowing them to obtain coverage prior to the start of tax season.
Affordable Health Insurance Unemployed - Health Insurance Options for the Unemployed
Being in between jobs and unemployed can bring in many financial problems to your doorstep You might need to depend on someone else to help you with covering your day to day expenses
Motorbike Insurance Needed By Riders
Motorbike insurance provides need protection to expensive bikes or bike riders. Although some of the coverage and costs of motorbike insurance are similar to other auto plans, there are also some unique differences that affect the benefits and costs of motorbike insurance.
Motorbike Insurance Can Vary So Shop With A Specialist
While motorbike insurance is not as competitive as that for car drivers the insurance premiums do still vary and shopping around is essential when it comes to getting the cheapest deal. By going with an online specialist for your insurance you will be sure that you have accessed some of the lowest insurance providers in the UK and will have found the cheapest quotes possible for cover.
What Is The Difference Between One Way Insurance And Full Coverage Insurance
When traveling, especially when going abroad, it is often fundamental to have an insurance policy for your trip. When going to foreign countries that you often know little or nothing about, it is very important to do all you can to insure your trip goes as planned, with as few setbacks as possible. Unfortunately, unplanned events that are completely out of our control often come up, this is one reason why insurance policies are a necessary part of traveling. Whenever preparing for a trip, be sure to consult your travel agent about insurance plans and fees.
A Life Insurance Comparison: Whole Life Insurance Versus Term Life Insurance
What type of life insurance might fulfill your assurance needs This article is a life insurance comparison about whole life insurance versus term life insurance