COBRA too expensive for many unemployed

For many unemployed Americans, the cost of maintaining COBRA health insurance is just too expensive.COBRA, the Consolidated Omnibus Budget Reconciliation Act of 1985, has as main goal to make health insurance available to unemployed Americans. The plan typically provides 18 months of health insurance to workers who have been laid off or fired from their jobs. Under COBRA, the unemployed individual must pay the full cost of the health insurance premium, plus administrative fees.The cost of COBRA can be staggering, because COBRA rates are based on group insurance, traditionally much more costly than individual health insurance rates. So, if an individual that has just lost their job, in this time of record high unemployment, and they do not know how long their will be out of work, paying for COBRA may not be an option. It is understandable that given this dilemma, many individuals who have just lost their job join the ranks of the uninsured, rather than elect COBRA.It is evident that the theory behind COBRA is a good one, but the reality is that it is not a reasonable alternative for the unemployed. A better alternative is individual health insurance coverage that a person buys themselves. There is no expiration on an individual policy, traditionally the cost is a fraction of what COBRA is, for identical coverage.

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