Consider your options when you lose your employer-sponsored insurance
Finding out you are being laid off is stressful, and in addition to that, you have to make important decisions about health insurance that can save you—or cost you—thousands of dollars at a critical time. It’s important to consider all your options when deciding between COBRA or buying your own plan. What is COBRA ? COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, which is a federal law that allows you and any of your immediate family members to stay on your employer’s health plan under certain circumstances : You lose or quit your job You get a divorce The employee dies You are no longer covered as a dependent due to your age Only employers with 20 or more workers in the previous year are required to offer COBRA coverage. State and local governments fall under COBRA, but the federal government and certain religious organizations do not. COBRA can be expensive. People who choose COBRA coverage must pay the entire premium, including the portion previ...
