Is COBRA Worth the Financial Bite?

When you leave a job, get laid off, or in my case get fired for “inappropriate bathroom breaks,” your employer will offer you to continue on their health insurance plan through the Consolidated Omnibus Reconciliation Act (COBRA). But what is it, how does it work, and should you sign on?

Here’s Five Fast Facts About COBRA:

1. ⚕️ What Is It? - COBRA basically allows you to keep your job-based health, dental, and vision insurance coverage in place for a limited amount of time. 
2. 🏥 Am I Eligible? - You (and your family!) are eligible for COBRA if you had insurance through your employer and they had 20 or more full-time employees.
3. 💊 How Long Does It Last? - Federal coverage lasts 18 months. It can extend to 36 months if you have a second “life event” like a divorce or death of a spouse.
4. 🩺 What’s It Cost? - It’s not cheap, because you’re paying all of your premium, including the part your employer used to pay for. We’re talking an average of $645 a month for single coverage and $1,852 a month for family.
5. 💉 Holy S**t That’s a Lot! - You don’t need to sign on for COBRA. You can look at plans available at healthcare.gov, enroll in a trade or professional group plan, or get on your spouse’s plan if you’re married. 

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🔥Bottom line: Healthcare is almost like gambling at this point. COBRA is a nice safety net should some sort of catastrophe strike. However, it inevitably leads you to ask “why is healthcare so dang expensive?” That answer would take more than five fast facts and it ain't pretty, but here’s a good place to start. Just remember: It doesn’t pay to get sick in America.

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Have you been on COBRA before?

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