Affordable Health Insurance Alternatives When COBRA Isn’t an Option

Health insurance provides a family with protection from expensive healthcare. sommart sombutwanitkul/Shutterstock

Dear Cheapskate: After 10 years at the same job, my husband was recently laid off. I’m a freelance writer. I work mainly from home so I can be with our 3-year-old son. We’ve always relied on my husband’s company for health insurance. Now we’re faced with paying for COBRA, and the cost for a family of three is outrageous. We have no choice but to keep our coverage, but we also need to pay for other necessities like a roof over our heads and food. Are there any cheaper health insurance alternatives out there?

Dear Madeline: I totally understand how overwhelming it must feel to suddenly be faced with the cost of COBRA after your husband’s job loss. It’s enough to make you want to pull your hair out! But don’t worry, there are definitely other options that could give you some breathing room. Here are a few to look into:

Health Insurance Marketplace (healthcare.gov): This is a great place to compare health plans and prices that are available in your state. If you find something that fits your needs, you can apply online. Open enrollment runs from Nov. 1 to Jan. 15, but if you’ve lost coverage, you may qualify for a special enrollment period, which lets you apply outside the usual window.

Costco Health Insurance: If you’re a Costco member, check out their health insurance marketplace through CBC Health Insurance. They offer plans for small businesses, large companies, and individuals, and you might be surprised at how affordable they are. Visit www.costcoquote.com to explore options.

Medicaid: Based on your income and household size, you may qualify for Medicaid, a program that offers low-cost or free health coverage. Be sure to check your state’s Medicaid website to see if you’re eligible.

Freelancers Union: As a freelance writer, you might want to join the Freelancers Union. They provide affordable group health insurance plans for freelancers. It’s definitely worth a look at www.freelancersunion.org.

Short-Term Health Plans: These are designed to offer temporary coverage, especially if you and your family are healthy. They can be more affordable than COBRA, but keep in mind that as of Sept. 1, 2024, short-term plans are limited to four months, including renewals. You can learn more about short-term plans at www.healthinsurance.org/short-term-health-insurance/.

Health Sharing Ministries: This option might be more affordable, but it’s important to know that they don’t cover everything that traditional insurance would. These ministries work by members sharing medical costs with each other. Medi-Share (medishare.com) and Samaritan Ministries (samaritanministries.org) are two options to explore.

Community Health Programs: Some local health programs or clinics offer reduced-cost services. Check with your community’s health department or center to see what’s available.

Employer-Sponsored Health Plans: I assume your husband is looking for a new job. Keep in mind that even part-time positions sometimes come with health insurance benefits. That might be a stop-gap option worth exploring while he searches for his next full-time position.

High-Deductible Health Plans: If your family is in good health, an HDHP paired with a health savings account could help lower your monthly premiums. You'll pay more out of pocket for routine care, but it will save you on premiums, and you can use the HSA for medical expenses. A health insurance broker can help you navigate through your options and find the best plan for your family. They may even have access to plans that aren’t widely advertised.

Just remember to carefully compare premiums, deductibles, and out-of-pocket costs before committing to any plan. Your goal is to find a solution that gives you both affordability and the coverage you need.

Take a deep breath. I’m confident you'll find something that works for you.

Dear Readers: We would love to hear from you. What topics would you like to read about? Please send your feedback and tips to [email protected].