The Pain of C.O.B.R.A.

The Consolidated Omnibus Budget Reconciliation Act is better known as C.O.B.R.A. and it was created to provide employees who lose their jobs with a continuation of their health coverage at group rates. The coverage is temporary and generally lasts a maximum of 18 months (although up to 36 months is available in certain circumstances).

So you lost your job and you are now responsible for paying 100% of your health insurance premium plus a 2% fee for administrative costs. You don't have the flexibility to shop for better group rates either. With C.O.B.R.A. you continue with the plan your former employer selected. Oh, and if your former employer drops their insurance plan or goes out of business, you won't have any insurance either. If your employer has less than 20 employees than C.O.B.R.A. may not apply either.

The bottom line is, your financial situation becomes poor when unemployed. You can barely afford food, rent and other expenses...how are you going to pay for health insurance through C.O.B.R.A.? You can't shop for a less expensive plan or change plan benefits...you are stuck with your former employers choice. What can you do?

You can compare a variety of individual plans to find out which options are the most affordable for you and your family. Go to www.marronfinancial.com and click on Health Insurance. You will then be allowed to search the widest variety of plans and companies on the Internet. We recommend the you look at the options we provide through eHealth and we are sure you will find the right plan for you.