With millions of Americans out of work, COBRA is an acronym that all too many are familiar with. While the cost of extending coverage is exorbitant, the federal government does allow for a subsidy to help families with keeping these costs within the realm of reason. To aid individuals and families that are now using COBRA health insurance, eHealthInsurance.com has created a widget to help in calculating when your COBRA subsidy will end. This calculator is provided below:
In the event that you are not affected by a layoff or using COBRA, let me give you an idea of what these individuals and families are facing. This year, our health insurance provided by my wife's employer will cost us $4,020 in premiums out of our pockets. In addition, her company contributes another $6,000 to subsidize our premiums for a grand total of $10,020 annually. This doesn't include a deductible of $4,000 or co-insurance of 30% after the deductible is met.
If you consider the average household with $50,000 in earnings for a year, COBRA is great because you can get coverage, but the costs are outlandish. Again, the government has setup a subsidy to help offset these costs, but keep in mind that even with the subsidy, many households still cannot afford it.
To learn more about COBRA, click here.
To read more about the COBRA subsidy, click here.
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