How to Cope With COBRA

The Consolidated Omnibus Budget Reconciliation Act of 1985, better known as COBRA, is an insurance program giving people the ability to have continued health insurance coverage after leaving a job. COBRA provides affordable insurance policies for individuals who have been laid off or have had a significant reduction in work hours. COBRA covers these individuals who would not otherwise be eligible to get insurance coverage due to a lack of a primary employer. COBRA insurance also covers spouses and dependents of individuals who would lose coverage due to a change in status of the policy holder.

Instructions

• 1

  Go through your finances and determine how much money you can reasonably afford each month for insurance. Missing a COBRA payment because of overextending yourself may leave you without any insurance coverage at all.

• 2

  Visit the COBRA website or call a customer service representative at 877-279-7959. Ask about your benefits, and ask any questions you might have about payments and how long your insurance benefits will last. They will be able to guide you toward a more permanent insurance option.

• 3

  Set aside enough money to cover your monthly COBRA payments. Make your payments on time each month to ensure COBRA will continue to cover any medical costs you might incur. Set up automatic payment with your banking institution, if available, to ensure your payments are made on time each month.