When people who are newly unemployed see the cost of COBRA coverage, it is easy to get sticker shock. Because employers usually pay for all or part of the cost and because it is deducted from your paycheck, you may not previously have been aware of exactly how much your health insurance policy costs. If your qualifying event is job loss, you may be wondering how you can afford to pay for coverage.
However, when you lose your employer-based health insurance, you should know that COBRA coverage is not your only option. One option is the Affordable Care Act (ACA).The ACA is a government sponsored health insurance marketplace where you can shop for a health insurance policy that meets your needs.
For many people no longer insured through their employers, the marketplace coverage is the most affordable health insurance they will find.
The termination of employer-based coverage qualifies you to apply for coverage through the ACA as long as you have not already opted for COBRA coverage.
Each policy in the marketplace has different levels of coverage and cost, and different states have varying numbers of participants in the marketplace.
In your state, you may only have one health insurance company available or you might be able to choose from among half a dozen.
Depending on your income and the size of your family, you may qualify for government subsidies to reduce your out-of-pocket cost for health insurance or pay for it completely through Medicaid. You can apply for coverage at the government’s health care website.
Fortunately, the government health care website makes it easy to compare different plans, so you can find affordable health care coverage thatmeets your health care needs.