Is C.O.B.R.A. Right for You?

If your employment ends, COBRA insurance might be your best option to insure you and your family. It can also be an extremely costly mistake. Knowing how to decide whether to accept a previous job's COBRA offer might help you save you thousands of dollars. COBRA might cost hundreds more each month when compared to similar non-COBRA insurance options that offer similar or sometimes better benefits.

C.O.B.R.A. might be the right choice when:

Individual and family medical insurance isn't available to you

Individual health coverage would cost much more

You're assured acceptance into a health care cover plan when COBRA ends

If you or a family member has a significant medical issue, accepting your COBRA option can be your best and only viable choice. Private health care insurance may not be available to you and your C.O.B.R.A. medical coverage policy will probably cover the healthcare condition.

Usually C.O.B.R.A. medical care coverage costs more than a policy available to those who purchase their insurance directly. This is because COBRA is an extension of your eligibility for your company's group medical cover policy and group medical cover usually costs more than private medical coverage.

However, in certain scenarios, C.O.B.R.A. will cost less than a plan that you may purchase on your own. If that difference is great enough, you might want to consider the COBRA option.

If you're guaranteed acceptance into a quality healthcare coverage policy when your C.O.B.R.A. eligibility ends you avoid the biggest pitfall of COBRA medical insurance. Often people who are perfectly healthy when they sign up for COBRA won't be when their eligibility ends. This might mean that their home or other assets are used to pay for health care bills that are incurred after their COBRA plan ends.

COBRA could be a pricey mistake in many other situations. This is because:

Accepting C.O.B.R.A. now may mean that you won't qualify for other coverage when your C.O.B.R.A. ends

COBRA might cost you more than a private medical assurance policy

The biggest problem with accepting COBRA isn't the cost when compared to a similar individual and family health insurance policy. The biggest issue is the tens of thousands of dollars you might have to pay out of your pocket for medical care after your C.O.B.R.A. ends. C.O.B.R.A. will typically end 18 months after your employment ends. If, for example, you will be eligible for Medicare when your C.O.B.R.A. ends, this issue shouldn't concern you. However, there is always the chance that you will develop a serious medical care condition during the time that you are covered by C.O.B.R.A.. This might cause any new coverage company to reject your application.

If you can purchase a policy that you can keep until you are eligible for Medicare while you are healthy, you may avoid this potential disastrous event.

Many people fail to even check prices for other medical care cover options. C.O.B.R.A. healthcare coverage is often the most expensive option. C.O.B.R.A. may cost hundreds more each month when compared a private healthcare insurance policy!

be certain to shop around for prices and benefits. Very often your C.O.B.R.A. health care plan insurer will have a similar policy non-COBRA policy that you're eligible for.

COBRA insurance might be the right choice in certain situations. However make sure to investigate other available insurance choices because purchasing C.O.B.R.A. when there are better insurance choices an option for you might be a costly mistake.
A. J. Balkcom has an insurance agency in Connecticut and has helped many many families find health insurance coverage. He has been helping families find California home insurance quotes or Tennessee medical insurance