COBRA Subsidy Expires… Alternatives Available
Effective June 1, 2010, the federal COBRA subsidy expired. The program was enacted in March of 2009 and allowed COBRA participants to receive a 65% federal subsidy as a part of the Obama Administration’s $787 billion stimulus program.
House Democrats at the end of May elected not to extend the subsidy through the remainder of 2010, as an extension would have cost taxpayers nearly $8 billion. Although this move will ultimately save the taxpayers, it’s the unemployed who are truly feeling the pinch. According to Families USA, a consumer advocacy group, COBRA premiums consume as much as 84% of a person’s unemployment check (Tami Luhby, June 7, 2010, CNNMoney.com). To offer an example of the savings provided by the COBRA subsidy, with the average annual cost of COBRA around $13,500 for a family, the subsidy reduced this amount to roughly $4,725.
Although many COBRA participants feel as though their current policy is their only option, this is often times not the case. By purchasing an individual or family policy, most people can cut their monthly premiums in half. Many individuals will purchase a policy while out of work and then possibly move to a group plan when they find another job. This strategy allows for considerable savings and allows individuals and families to have substantial coverage should health problems arise.
As an aid to find individual and family coverage, many people are turning to the internet. Websites, such as InsuranceChaser.com, offer individuals and families of Ohio, Kentucky and Indiana the ability to compare rates of some of the largest carriers in the country (Aetna, Anthem, Humana, Medical Mutual of Ohio and United Health Care).
If you are interested in seeing quotes from the major health insurance carriers, feel free to contact an agent at Chaser Insurance Group at (877)775-4321 or compare rates for yourself at www.InsuranceChaser.com.
Read Tami Luhby’s article for yourself! (http://money.cnn.com/2010/06/06/news/economy/COBRA_subsidy_health_insurance/index.htm)
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