COBRA Insurance Alternatives

Learn about more affordable COBRA Insurance Alternatives


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COBRA insurance, although a great option for many, isn’t the right choice for everyone. There are two key downsides to COBRA health insurance that make it out of reach for many families. First, and usually most crucial for many, is the extremely high cost of COBRA insurance. Since you are responsible for paying the entire premium on COBRA insurance, many people find the cost is too much. This is especially true since most people signing up for COBRA have recently lost their jobs. The second major downside to COBRA health insurance is that it is only a short-term solution. COBRA usually ends after 18 months, leaving people once again in search of health insurance. Many people prefer to find a long lasting plan soon after losing employment, so they are not constantly worried about when COBRA coverage will end.

COBRA Health Insurance Alternatives

Private Individual and Family Health Insurance Plans

The most common alternative to COBRA Insurance are private individual and family plans offered through companies like eHealth Insurance. These plans range greatly in price as well as the type of coverage they offer. They generally offer health insurance coverage most similar to what you would have had with your employer, but can be much less expensive. This is especially true if you are in good health and live in a state with competitive insurance rates. It is always smart to get at least 3 quotes for individual and family health insurance plans and compare the details of the plans carefully. Make sure to compare the cost of the plan, the coverage details, deductible and co-payment cost, prescription cost, and the doctors and on going care that is included. Be wary of very inexpensive plans because likely they come with high deductibles or very strict guidelines about what is covered. You can start getting free health insurance quotes below to find cheaper alternatives to COBRA.

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Professional or Alumni Organizations

Many people are not aware that many alumni and professional organizations offer health insurance options to their members. By using the collective buying power of multiple members in the group, many times they can get more affordable and competitive health insurance rates to offer to members and their families. Always make sure to check with any professional or alumni organizations you belong to and get quotes and information about the health insurance plans they offer. This is even available for freelancers in many cases.

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Catastrophic Health Insurance

One of the cheapest health insurance options on the market are catastrophic health insurance plans. These health insurance plans, as the name suggests, only cover serious emergency care. These types of plans normally come with a very high deductible, upwards of $1000, and do not cover any ongoing medical needs. These plans are best suited as a COBRA insurance alternative for people who are healthy and do not require ongoing medical care. It will protect you from incurring enormous expenses if you need emergency care, but will not cover much else. Get a quote below for a catastrophic health insurance plan in your area.

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Short Term Health Insurance

Short Term Health Insurance, as you can probably guess from the name, is health insurance that only lasts for a limited time – normally between 1 day and 18 months. It is meant to help people during transition times and can be a good and very affordable option for people who are sure they will have a new health insurance plan soon. The plans vary but usually have fairly high deductibles and are meant for emergencies and other serious medical needs. Get a quote below for a short term health insurance plan in your area.

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High Deductible Health Insurance Plans

Like you may have guessed from the name, high deductible health insurance plans are plans with a very high deductible, normally of at least $1000. That means that the insurance company will not cover any expenses until you reach and pay the $1000 threshold. For people who are relatively healthy and do not need regular doctor care, a high deductible health insurance plan can be a cheap and worthwhile COBRA insurance alternative. Get a quote below for a high deductible plan in your area.

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Cost Comparison Chart: Monthly COBRA Insurance and Alternatives *

Individual Family
COBRA $600 $1,084
Catastrophic Insurance $100 $180
Short Term Health Insurance $120 $216
Individual or Family Health Insurance $231 $420
High Deductible Health Insurance $51 $92
* Based on a healthy individual or family in 2010. Your plan will likely vary based on age, gender, current health condition, location, as well as the co-payments, deductibles, etc. you choose

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