Can You Afford COBRA Insurance When Leaving Your Job?
The Consolidated Omnibus Budget Reconciliation Act, or COBRA, lets you continue your employer-given health insurance short-term after you depart.
But keep in mind that it’ll cost you more than what you were paying as an employee. And you might not be able to afford it.
Here’s what you need to know about COBRA and if getting it is suitable for you and your family.
What is COBRA?
If your former company had 20 employees or more in the year before your leave, the employer is generally required to offer the COBRA extension to families. Sometimes it’s called continuation coverage.
According to the Department of Labor, “Life insurance and disability benefits are not considered “medical care.”
So COBRA does not cover plans that provide only life insurance or disability benefits” – just health insurance.
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