Getting a COBRA notice after getting laid off is akin to adding insult to injury. First people go through the shock of job loss and then at the precise time their income has taken a huge hit, they get their COBRA or Colorado State Continuation Letter stating that they can continue their old employer sponsored group plan, but often at a cost of $1000 to $1500 a month.
For many people, $1500 a month is an amount generally reserved for mortgage payments, not insurance payments. However, this is the total unsubsidized premium amount. On average the employer may have paid 3/4 of that premium plus a 2% administrative fee.
Not surprisingly, a new study shows that less than one jobless person in ten continues their old employer’s health insurance benefits.
If people are healthy enough they may be able to qualify for a much less expensive individual health insurance plan. Generally, it is a good idea to work with a qualified local broker to assist you in your health insurance search. There should be NO extra cost and their expertise will save you time and frustration by matching you up with the right carrier and plan the first time.