Sunday, October 11, 2009

Is COBRA the best option for the unemployed?

Earlier this year, the government provided assistance to people who lost jobs in 2009 by paying for a portion of the Consolidated Omnibus Budget Reconciliation Act (COBRA) health insurance premium. Having the government pay 65% doesn't last forever, so those who lose their jobs in 2010 will have to pay 100% of the COBRA premium.

Will COBRA be the best option for people in 2010? Or, will alternative health plans be more cost-effective? Since health insurance is regulated at the state level, your options will really depend on where you currently live. Perhaps you may want to consider moving back home with your parents if they live in a state that offers better healthcare options. If you lose your job, you get 60 days to decide if you wish to enroll in COBRA.

To learn more about COBRA, visit the U.S. Department of Labor website here.

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