Affordable health care is one thing that everyone needs in the United States of America. Most times, affordable health care plans come with employment. An employer might have an employer-sponsored health plan for his/her workers. This would serve as one of the benefits attached to being employed under the employer.
But what happens when you lose that job? All the benefits are immediately stripped from you. This will leave you distraught and confused for a while. In a bid to assist individuals in such situations, the government set up OBAMACARE and COBRA health insurance.
These health plans were created to help you and your family in any event of job loss or financial-strain. However, the question now would be, which is better? The answer is not far-fetched as some parameters are used to explain their differences below.
What is COBRA and OBAMACARE?
COBRA is an acronym for the Consolidated Omnibus Budget Reconciliation Act. It is a health insurance plan developed by the government over two decades ago. This health care plan is provided to assist individuals that have been laid-off work, retired, or experienced a reduction in work hours.
Obamacare was founded under the Affordable Care Act in 2010 to make health insurance plans more accessible and affordable to the citizens of America. This Act has had a profound effect on the health system, as more citizens are getting insured. Click here for different insurance coverage.
Difference in cost
The cost of an insurance plan plays a huge role in the choice we make. COBRA health insurance costs an average of $600 per month. Mind you, this price depends on the health insurance plan you enjoyed under your employer.
OBAMACARE on the other hand is cheaper. It cost an average of $462 per month. This price is solely dependent on your choice of plan. There are plans more expensive than the aforementioned average price. So, you just have to choose what you can afford.
Difference in longevity
COBRA health insurance can last for up to three years depending on the circumstances. All you have to do is register yourself within 60 days after you are laid off from work.
OBAMACARE under the ACA does not have an expiration. As long as you are buoyant enough to renew it, you do not have a problem.
The Difference in who can enroll
Only workers under an employer-sponsored COBRA insurance plan are eligible. Because of this,you will enjoy the benefits of COBRA even after you lose your job, retire, or quit. With COBRA, your spouse, children, and other relatives get to benefit also.
It is quite different for OBAMACARE. All citizens of America are eligible for OBAMACARE health insurance. You are only disqualified if you are not a citizen of the United States, in prison, or no medicare coverage.
Switch between COBRA and OBAMACARE
With the differences given above, making a choice should no longer be a task. You just have to find one that is most suitable for you and your family. Also,
make sure to weigh your financial status and your circumstances before making a choice.