Is COBRA the Best Option for People Between Jobs?

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WPS Health Insurance, a Leading Provider of Individual Health Insurance, Helps Wisconsin Residents Decide with a New Educational Article

WPS is Wisconsin's leading not-for-profit health insurer.

One of the most important concerns for individuals and families when considering COBRA is cost.

Most Wisconsin residents receive health insurance coverage through their employers’ group health plans. But what happens to people who find themselves suddenly unemployed? What options do people have if they decide to change jobs or go into business for themselves? At times like these, it is important for people to understand the facts about their options—including the possibility of continuing coverage under a former employer’s group plan through COBRA. WPS Health Insurance, Wisconsin’s leading not-for-profit health insurer and provider of affordable group and individual health insurance, examines the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) and weighs its pros and cons in a new educational article titled, “Health Insurance 101: Is COBRA the Best Option for People Between Jobs?”

Available for free download from the WPS website, this article, “Health Insurance 101: Is COBRA the Best Option for People Between Jobs?” discusses important elements of COBRA, including its eligibility requirements, and helps Wisconsin residents decide whether or not this path is the right one for them.

“Every year, thousands of newly unemployed Wisconsin residents ask the question: ‘Should I enroll in COBRA or shouldn’t I?’” said Jim Baird, vice president of individual sales at WPS Health Insurance. “It’s a big decision, and the answer depends on each individual. That’s why it’s essential for people to know the facts about their health insurance options—so they can effectively decide what’s best for themselves and their families.”

One of the most important concerns for individuals and families when considering COBRA is cost. While COBRA grants former employees and qualified dependents access to all of the same health benefits they enjoyed on the employer’s health plan, the employer no longer pays anything toward the coverage. Instead, individuals are responsible for paying the full group premium plus an administrative fee of up to 2%. In addition, they still must pay any coinsurance, deductibles, and copayments that the plan normally requires.

The article also suggests situations in which COBRA may be a good choice—for example, if the person has a pre-existing medical condition or has certain medical needs—and when it may be better to consider an individual health plan purchased from a private insurance company.

WPS encourages individuals and families looking for more health insurance tips and strategies to check out the WPS Learning Center for free articles on controlling costs, preventing illness, making wise health decisions, and other timely topics. For questions or to request a quote for a high-quality individual or family plan from WPS, please call 1-888-245-4197 to talk with a friendly representative.

About WPS Health Insurance
Founded in 1946, WPS is Wisconsin’s leading not-for-profit health insurer, offering affordable individual health insurance, family health insurance, high-deductible health plans, and short-term health insurance, as well as flexible and affordable group plans and cost-effective benefit plan administration for businesses. In addition, the WPS Medicare division administers Part A and B benefits for millions of seniors in multiple states, and the WPS TRICARE division serves millions more members of the U.S. military and their families. In 2010 and 2011, WPS was recognized by the international Ethisphere™ Institute as one of the World’s Most Ethical Companies, and is the only health insurance company to earn this distinction. For more information about WPS Health Insurance, visit http://www.wpsic.com.

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Tami Gilbertson
WPS Health Insurance
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