Is Cobra Health Insurance Your Best Opportunity?
When you stop working for an employer, they will probably offer you COBRA medical coverage
. COBRA Insurance allows you to keep the group medical insurance coverage that you had when you were employed.COBRA insurance could be the right choice for you. However there are many situations where one can find lower-priced coverage through an individual or family medical insurance contract that is not connected with COBRA Insurance.
COBRA health insurance allows you to have medical insurance without any medical history. So long as you sign up for the policy during the election period and pay the monthly premiums on time you will be able to keep your insurance regardless of your health history.
COBRA is only offered if you were enrolled in the group medical insurance coverage when you left your employer. If you were terminated for gross misconduct, your employer does not have to offer COBRA Insurance to you. If your employer has fewer than 20 employees COBRA Insurance is not mandatory.
COBRA is temporary coverage. In most situations a former employee can only keep coverage for 18 months. In certain situations, you can keep COBRA health insurance for up to three years.
There are several circumstances that can cause you to lose your right to COBRA before your eligibility would otherwise run out. Not paying your premiums on time will result in your being dropped from COBRA medical coverage. You can also be dropped if your former employer no longer offers a group health insurance policy to its current employees. You will lose the coverage if you accept a group medical insurance plan that covers your any pre-existing conditions you may have. If you become eligible for Medicare your COBRA will end.
One of the shortcomings of COBRA medical coverage is the fact that it is a temporary contract. When your eligibility ends you will have to apply for coverage through another policy. There is no guarantee that you will qualify then. Taking your COBRA Insurance option can mean that you become uninsurable at some point.
If you have 18 months of eligibility for COBRA medical coverage, you have a year and a half where a sickness or an accident can render you medically uninsurable for your next insurance plan. For this reason it may be advisable to get a health insurance contract that you can keep long term as soon as your employment ends.
COBRA is often much more expensive than individually underwritten health insurance contracts. Insurance companies often base the rates they charge to groups largely on the claims that receive for that group. When you buy an individual or family plan, the rate will be based on the claims they expect to receive for you or you family.
This can result in a your being charged a much lower premium. If you and your family are in good health you will probably pay as little as half the price you would have paid for COBRA health insurance.
You may find that the same medical insurance carrier that provides group insurance to your employer will also insure you on a non-group basis. This can mean that you can tap into the same network health care providers and hospitals if you switch to one of their individual or family policies.
You should explore your options with alternatives to COBRA Insurance whether even if are already insured by a COBRA contract. You do not have to wait until your eligibility ends to switch. If get a contract from another insurer, you can drop your COBRA medical coverage at the end of the month.
COBRA Insurance is the best option for many. It may not be the best choice for you or your family. Be sure to get competitive health insurance quotes and look at COBRA medical coverage alternatives. Another policy may be much cheaper and still provide better coverage.
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