If you’ve ever found yourself in a life-changing situation such as losing a job, you may wonder what you will do about healthcare. There are options available for those who need to find health insurance on their own and don’t have the ability to receive it through an employer, such as COBRA and plans through indipop. Today, we will compare the two.
What Is COBRA Health Insurance?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) essentially provides temporary insurance coverage to workers and their families who would otherwise lose it due to certain circumstances. The insurance would be exactly the same as the insurance one’s employer had provided, but instead of your employer contributing a percentage or covering your plan, you are now responsible for the monthly payments. COBRA is designed to continue coverage after a qualifying life event that may change your eligibility through your employer.
COBRA is not standalone health insurance and is not for those who have not experienced a qualifying life event. It simply offers temporary healthcare coverage for a period of time helping you stay with the same doctors and receive the same health plan benefits. COBRA is often far more expensive than other healthcare options because you are responsible for the full rate the company was paying in their group plan.
Who is eligible to get COBRA insurance?
In order to qualify for COBRA, a worker must experience a qualifying life event. In addition, the group health insurance plan that someone was initially part of must be covered by COBRA. COBRA covers group health coverage plans sponsored by an employer that had at least 20 employees working at least 50% of the time in the past year. If someone was part of a COBRA-covered group and meets a qualifying life event, then they have a limited time frame in which they can elect to enroll in COBRA.
Examples of qualifying life events are:
- Leaving a job or being terminated
- Working fewer hours
- Medicare eligibility
- Divorce from the policyholder
- Death of the insured coverage holder who was covering their family members under their policy
- Turning 26 and aging out of family coverage
Why does COBRA have high premiums?
Employers often pay a significant portion of the actual cost of an insurance premium. Because of this, when one is responsible for the entire premium, it can be much higher than what was being paid during employment. It may also be topped with an extra 2% to cover overhead charges. Someone on COBRA could end up paying 102% of their insurance plan out-of-pocket, which can be a huge cost.
It is important to use the time you have between a qualifying event and the deadline to sign up for COBRA to research and compare costs because there may be more affordable options available.
What is indipop
Indipop is the first marketplace that curated high-value membership-based plans. They researched dozens of options in the market and chose plans that met their strict criteria. indipop plans do not function like traditional insurance, but they still keep you healthy and safe. Instead of a premium and deductible, you become a member of a “group” that shares the cost of medical needs. These plans are also known as healthshares, subscriptions, and cost-sharing.
Each plan can function a little differently and may offer different services, but the goal is the same: they leverage a concierge or care team to help guide you, ensuring you receive the best care at a fair market cost and have a set transparent rate for emergency surgeries or hospitalization. You are never alone in trying to navigate a massive healthcare system and these plans can also be used in conjunction with other health insurance to cover gaps in coverage.
Who Qualifies for Subscription-Based Healthcare?
The plans indipop curated are not based on employment status or earnings, you can choose subscription-based healthcare options without a qualifying life event or wait for the open enrollment period to switch to a plan. Indipop enrolls each month for the upcoming month and because it is a membership you can enroll at any time.
The indipop plans can be utilized by anyone aged 18-64 and are very popular with the self-employed population including, contractors, freelancers, and small business owners who receive quality major medical, hospitalization, and everyday care and the fair market rate.
How much does subscription-based medical care really cost?
The typical annual saving for health-conscious individuals using an indipop plan is between 20%-40% of the cost of insurance premiums, and the savings for families increase to 70% savings monthly and annually out of pocket. Subscription healthcare like the plans from indipop also acts transparently, you know exactly what you owe for services at all times. Due to being accepted nationwide, you never have to worry about being out of network, as well. The benefits will remain the same regardless of where you are in the United States.