Understand your Colorado COBRA Insurance Options
Making health insurance decisions is never easy, especially after losing, quitting, or retiring from your job. Not only are you facing the insecurity of no longer being employed and the financial implications that can have, on top of that you have to make difficult decisions about health insurance options. This is made even more complicated by trying to understand tricky and sometimes difficult information about Colorado COBRA insurance and the other options you have. Many people quickly choose Colorado COBRA insurance without fully understanding all of their options. However once you have a better understanding of what your options are, you can make the right decision for your healthcare needs and financial needs in a health insurance plan.
The first health insurance most people consider after losing their group health insurance coverage is federal COBRA insurance. Federal COBRA insurance allows people to continue to keep the exact same health insurance coverage provided they meet the federal requirements set out in the law. The main requirements set out include how you lost your health insurance, who is eligible, and what type of health insurance you had. In most situations, if the covered employee wasn’t let go due to gross misconduct and at least 20 people were insured on the plan, then the covered employee, their spouse, and their dependents are eligible for federal COBRA insurance. This could also extend to people who are getting divorced or losing their dependent status and they are also in many cases eligible for federal COBRA insurance. The benefits of federal COBRA insurance are that you keep the exact same health insurance plan and there is no break in coverage or time spent looking for a new insurance plan. The major downside of COBRA insurance is the cost since you are responsible for paying the entire premium plus a 2% administration fee. For many people this is significantly higher than what they are used to since their employer will no longer contribute to paying for the premium. Many people find their health insurance cost with COBRA can increase by up to 90%.
The second option most people look at is the state run Colorado COBRA insurance plan, commonly called Colorado Mini COBRA insurance. This plan was created by the state of Colorado to help people who do not qualify for federal COBRA insurance because they work at a company with between 2-19 employees. Like federal COBRA, it is also very expensive for most people because you must pay the entire premium on your own, but it also has the same benefit because your health insurance plan remains exactly the same.
The third and most often overlooked option is private health insurance. Most people don’t even consider this because they believe it will be too expensive. However for people who are relatively healthy, they usually can find a more affordable health insurance plan with private health insurance that offers similar coverage. The best way to explore private health insurance offers is to get a free quote and see what your options are.
The last option that people should always consider is governmental insurance either for their whole family or for their children. In many states there are health insurance plans available to people under a certain income level. These plans can offer great benefits at a very low cost to many families in need of health insurance.