The importance of affordable health care insurance in the society cannot be overemphasized. It reduces the strains on the finance of all and sundry. That is why the government of the United States have put up several policies to cater for the health insurance of her citizens.

One of such polices is the COBRA health insurance. Not everyone is aware of how it works. Most people are familiar with OBAMACARE health insurance than they are of COBRA. Well, this article aims to change that.

Here, we provide answers to five most frequently asked questions about COBRA health insurance.

What is COBRA health insurance?

First of all, COBRA is an acronym that stands for the Consolidated Omnibus Budget Reconciliation Act. It is a law set up by the government in 1985 to cater for the health insurance needs of retirees, the unemployed, and so on.

COBRA was established so that individuals that experience job loss would not feel stranded. It provides this group of individuals with health insurance coverage for a restricted timeframe.

Private establishments with no affiliation with the government are eligible for it. The basic requirement is that the establishment must have over 20 employees. Owners of such business have been advised to offer COBRA coverage to employees based on their eligibility. More details!

Who is eligible for COBRA continuation of benefits?

Unfortunately, not everyone is eligible for COBRA health insurance. Apart from the private business that was buttressed above, COBRA is only available to individuals in certain circumstances. Some of these circumstances may include the following;

  • As an employee, you must have been under a group health insurance plan in your work place.
  • In the events of retirement, resignation, or being fired from work, you become qualified for COBRA.
  • A reduction in your work rate that reduces your salary qualifies you too also qualifies you. Especially when your employer removes you from the group insurance plan.
  • The wife, husband, divorcee, child, and relatives of anyone under COBRA is qualified for it.

What plans are recovered under COBRA continuation of benefits?

Under COBRA continuation of benefits, eligible candidates are offered the same coverage as their employees health group plan. This means it is the same benefits that you were eligible for under your employer that COBRA provides.

COBRA does not cater for voluntary services. It does not cater for supplemental coverage either. Supplemental coverage may include hospital care insurance, disability, and life insurance.

What is COBRA so expensive?

COBRA is more expensive than most of the other government health insurance plan. This is so because COBRA pays a 100% of all the cost incured by your health plan. Additionally, COBRA is also liable to cater for your employer’s health plan that he/she paid for. All these make COBRA more expensive.

May I get insurance coverage outside of the COBRA continuation of benefits?

Because COBRA does not cover all kinds of healthcare plans, you are allowed to have an additional insurance plan. This will better safeguard you and your health in its entirety. Learn more details at:



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.


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.