COBRA health insurance coverage provides a short-term safety net for laid-off workers that allow them to maintain their health benefits until they can find a new job or new coverage. COBRA is a federal law that allows unemployed workers and their qualified family members to keep their group insurance coverage, but they will have to pay the premiums, and a small administrative fee, out-of-pocket. But not everybody can afford COBRA continuation of coverage benefits - the average cost of employer-provided health coverage for an employee and his family under a group plan is $1,069 a month while the average monthly unemployment benefits is $1,278. But an unemployed worker can avail of a subsidy under the COBRA program that will pay for 65% of premiums that will last for nine months.
If COBRA premiums are too high for you, there are a few ways in which you can lower them while still being able to maintain health coverage for you and your family. One way is to see if your child qualifies for the Children's Health Insurance Program that makes health insurance affordable to uninsured children in families with incomes that are too high to qualify for Medicaid. Benefits vary from state to state as each has its own individual CHIP program but in general they are required to provide services such as immunization, regular check-ups, dental care, inpatient and outpatient hospital care and x-ray and laboratory services. Families whose incomes meet free CHIP levels enjoy free coverage, while those above it may have to pay small monthly premiums as well as co-payments for selected services.
If you have a spouse with a chronic health problem, you can continue COBRA coverage for them while getting an individual plan for yourself. Apart from lowering COBRA premiums, it would also allow the sickly spouse to continue being covered, since many private health insurance providers may refuse to cover them. If you opt to get an individual health insurance policy, you have to understand the differences between an HMO and PPO health plan so you can decide which one is the best for you.
An HMO or health maintenance organization requires you to select a primary care physician (PPC) who will oversee all your medical care. All your health care services must come from providers who are members of the HMO's network; if you see a provider from outside the network you will have to shoulder a higher percentage or the total cost of the services rendered.
A PPO or Preferred Provider Organization does not usually require you to have a PPC thus allowing you to choose any health provider you wish provided they are a member of the PPO's network. If you opt to see a health care provider outside the network you may have to pay a higher share of the medical bill or even have to pay a deductible.
So when deciding to get PPO vs HMO insurance, make a list of the essential coverage you need to have and what you can afford to pay for health services. Keep in mind that a HMO plan offers you lower co-payments and more affordable coverage for many preventive-care programs while a PPO allows you more flexibility in making decisions about your health care. You can then discuss this with an insurance agent who will help you find a policy that meets your needs.
It is possible to find an individual insurance plan that is more cost effective, and in this quest knowing the difference between PPO vs HMO insurance can make a difference in price.
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