Learn about your health insurance options in Alabama
Unfortunately not everyone is qualified for federal COBRA insurance but that doesn’t mean that you do not have any options. Many states have created their own COBRA insurance plans for residents who do not qualify for federal COBRA insurance. These plans are normally known as mini COBRA programs and extend coverage beyond the federal program. In addition, Alabama COBRA insurance is not your only health insurance option after losing, quitting, or retiring from a job. Learn about other options below so you can find the right plan for you and your family.
The first option that people should consider is federal COBRA insurance. The federal COBRA insurance program allows people to continue to keep their employer sponsored health insurance plan for up to 18 months if they meet the federal COBRA eligibility requirements. Most people qualify for federal COBRA insurance if they worked at a company with over 20 employees and were not fired for gross misconduct.
For most people the most difficult aspect of COBRA insurance isn’t being eligible for it, but paying for it. COBRA insurance costs must be completely paid for by the employee. In most cases this means that the employee ends up paying 2-4 times as much as they did while they were employed since the employer no longer subsidizes the health insurance cost. In addition to having to pay the entire COBRA premium, you also must pay a 2% administration fee. This cost is simply out of reach for most people. However, there are much cheaper options with private health insurance plans without sacrificing coverage.
The second option in most states if you do not qualify for federal COBRA, would be to look at an Alabama COBRA insurance created by the state government to extend benefits to their residents who can’t get federal COBRA. Normally state’s extend benefits to people who work at smaller companies with between 2-19 employees. Unfortunately the state of Alabama does not have it’s own mini COBRA program.
Private health insurance is actually the best options for many people, specifically if they are looking for a lower cost option to COBRA insurance and are relatively healthy. Private health insurance plans offer similar coverage to COBRA or what you had with your employer and for many cost up to 65% less. The savings are even greater for people who want more minimal coverage and are interested in catastrophic insurance, short term insurance, or high deductible insurance. The easiest way to learn what options might be open to you is to get a free insurance quote.
The last type of health insurance that you should consider when looking at Alabama COBRA insurance is government sponsored health insurance. There are multiple insurance options for families and children who fall within a certain income range. Contact your local state agency to learn about government insurance options in your state.