For anyone who recently lost, quit, or even retired from their job figuring out what to do next for health insurance can be a tricky decision. Moreover, COBRA insurance legislation is confusing and many times it is hard to understand what options are out there. Understanding federal COBRA insurance, Arkansas COBRA insurance, and private health insurance plans is important so that you can make a decision for your family’s health insurance and budget.

Option 1: Federal COBRA Insurance, Cost for a Family: $1000+

The first option for individuals or families looking for health insurance coverage after job loss or retirement is COBRA insurance if they meet the federal requirements. Under the federal requirements most people who worked at a company with at least 20 employees on their health insurance plan will be eligible as long as they didn’t lose their job due to gross misconduct. Under the federal COBRA insurance plan you can keep the exact same health insurance plan that you had with your employer but you must pay the full cost for it. The full cost is what you normally contributed to your health insurance plan plus anything your employer paid. For most people this is between 60-90% of the health insurance cost. On top of paying the entire premium, you also must pay a 2% administration fee. For most families this ends up being $1000 or more monthly.

Under COBRA insurance you keep the exact same health insurance plan you had when you were employed for up to 18 months in most cases. It is meant to help you in the interim and make sure you do not go without health insurance. The coverage extends to your family and other dependents who were on your health insurance plan. Furthermore it can also extend to people losing insurance due to divorce or adult children losing coverage due to age.

Option 2: Arkansas COBRA Insurance, Cost for a Family: $1000+

The second option for someone in need of health insurance after job loss is Arkansas COBRA insurance. The state of Arkansas created its own COBRA insurance program for people who don’t qualify for the federal plan. The cost of Arkansas COBRA insurance is just about the same as federal COBRA because you will be responsible for the entire premium on your own. In addition there is a 2% administration fee. Arkansas COBRA insurance normally allows you to keep your employer sponsored health insurance plan for up to 18 months.

Option 3: Private Family Insurance Plan, Cost for a Family: $400+

The last and most affordable option in most cases is choosing a private individual or family health insurance plans. These plans are offered by private companies and normally are much less expensive than COBRA for similar coverage. The reason these plans can be so much cheaper is because they are only covering your family, not everyone you work with. If you are healthy that means a lower risk for the insurance company and therefore a lower rate. Most people find they can save over $600 a month by choosing a private health insurance plan. To find out what your options might be, you can get a free health insurance quote.