Tweet

COBRA Healthcare insurance vs Individual Health insurance

Guest post by: Alston Balkcom

Article Overview: While C.O.B.R.A. Insurance is often a good choice for many former employees, people often accept the C.O.B.R.A. option when there are better choices. If compared to private health insurance, C.O.B.R.A. can be too expensive, it can conclude too early and it can put someone else in control of your policy.

COBRA Healthcare insurance vs Individual Health insurance

While C.O.B.R.A. Insurance is often a good choice for many former employees, people often accept the C.O.B.R.A. option when there are better choices. If compared to private health insurance, C.O.B.R.A. can be too expensive, it can conclude too early and it can put someone else in control of your policy. C.O.B.R.A. is often too pricey

C.O.B.R.A. is s short-term solution

C.O.B.R.A. is under someone else's control

C.O.B.R.A. is often too expensive

The C.O.B.R.A. law gives you the right to be covered by a group assurance policy. One of the more costly misconceptions individuals have about medical coverage is that group insurance policies are less costly than private health care insurance policies that you can acquire on your own. Although this is sometimes true, it isn't usually. In a lot of states, healthcare coverage costs more if bought through an employer.

This is because of the cost of governmental mandates that apply to group healthcare Insurance policies that don't apply to individual medical care assurance policies. A company offering a group coverage policy may have to offer a policy to anyone regardless of their healthcare history. coverage companies cannot drop an insured person from their private medicalcare assurance policy simply because their medicalcare has worsened since they applied, but they may reject new people who are unhealthy. This may mean that the insurance company's costs are much higher for their group coverage policies than for their individual or family medicalcare coverage policies.

You may be offered the group insurance plan that you had before your job ended and/or if your company has made changes in the policies they offer to their current employees, it may be a different health policy.

C.O.B.R.A. is s short-term solution

In most scenarios, C.O.B.R.A. can be kept for a maximum of 18 months, however in certain scenarios, this time period may be extended to 36 months. This may mean that your coverage can be over when you need it the most. A good individual or family health insurance policy may cover you until you reach the age of 65.

You may be healthy enough to qualify for a long-term medical coverage policy when your job ends but not 18 months later. If you or someone in your family develop a condition or have some other medical issue that keeps you from buying a policy at the end of your C.O.B.R.A. eligibility

C.O.B.R.A. is under someone else's control

When you mail in your C.O.B.R.A. payments, you send them to your former company. While this happens rarely, sometimes a former employer will keepmoney and fail to pay the insurance company.

If your company changes the plans that are offered to their current employees, they may also change the plans available to those eligible for medicalcare Insurance because they have taken the C.O.B.R.A. option. This can mean that your policy may not cover you as well as it used to. You may suddenly be in the position of having a costly plan that no longer covers you well.

Scenarios where C.O.B.R.A. is better than family and/or individual health insurance:

When C.O.B.R.A. is much less pricey than a private Insurance policy

A private health Insurance policy isn't available to you

You're certain to get a medical coverage policy before your C.O.B.R.A. eligibility ends.

There are scenarios where C.O.B.R.A. is a better option than a individual medicalcare assurance plan. If you can't purchase a health care plan on your own at a good price and you find that your C.O.B.R.A. is being offered at a good price C.O.B.R.A. may be your best options. This of course is also true if you can'tbuy a C.O.B.R.A. policy because of a pre-existing condition. Another situation where C.O.B.R.A. may be a good option is when you will be eligible for Medicare or some other health care plan before your C.O.B.R.A. eligibility will end.

Related Articles
  Alternatives to COBRA health insurance
  COBRA Health Care insurance vs Family or Individual Medical Care Insurance
  Is COBRA healthcare coverage the best deal?
  Should you Take C.O.B.R.A.?
  3 Secrets to Lowering Healthcare Insurance Payments
  Healthcare Insurance Rates for Groups
  Health Insurance Questions to Ask When Shopping for Coverage.
  Three Strategies to Cope With Health Care Insurance Payments Stay Fit
  Job Changes And Health Insurance
  Self-Employed Health Care Insurance Choices
  Secrets To Dropping Your Private Health Care Insurance Premiums
  Learn from this costly new business owner medical care insurance error
  Will You Keep Your Health coverage
  Health Plans vs. Health Insurance In America
  Health Insurance Reform Now
  5 Common Health Insurance Misconceptions
  Low Cost Health Insurance Options
  Purchasing a Health Care Insurance Plan
  Why Is Healthcare Insurance So Expensive
  Aetna Health Insurance | Health Insurance Company Guide

Article Tags: cobra, health insurance, insurance, plans
Referred by: http://www.searchengineworkshops.com



Related Forum Posts
Health insurance - And as far as unplanned expenses, I'd like to suggest that everybody go right out and get health insurance if you don't have it already. As well as long-term disability insurance. Regardless of whether you run your own business or not, you simply can't afford to be without health insurance.
Re: Insurance for Home Based Business? - My home is insured for all the points mentioned here, and i also have insurance for my laptop. Here you must have insurance when you take a mortgage on your house, and everything is covered, visitors, fire, earthquakes, dogs, etc. The first thing I did after buying the laptop is calling my insurance agent and enter it to the policy.
Insurance for Home Based Business? - Apparently homeowners insurance and liability insurance may not be enough to cover your at home based business. Especially if you are running the business out of a detached garage or other dwelling on your property. Does anyone have another type of business insurance for their home based business or know anything about this?
Re: Do entrepreneurs have benefit coverage? - I'm surprised this topic hasn't gotten more play. It is very dangerous for people to not have health insurance, dental insurance, etc., yet those of us who are self-employed have a tendency to not buy it because we can't afford it. I, for example, don't have any coverage of any kind. But, I'm reasonably healthy, have no kids who need coverage, etc. Perhaps a better question would be - if you don't have coverage, why not? Too expensive? You're superstitious, etc?
Re: Do entrepreneurs have benefit coverage? - [quote="OmnivoreInk":20rus3mw]I'm surprised this topic hasn't gotten more play. It is very dangerous for people to not have health insurance, dental insurance, etc., yet those of us who are self-employed have a tendency to not buy it because we can't afford it. I, for example, don't have any coverage of any kind. But, I'm reasonably healthy, have no kids who need coverage, etc. Perhaps a better question would be - if you don't have coverage, why not? Too expensive? You're superstitious, etc?[/quote:20rus3mw] Hi Barbara, Well I live in Ontario, so I already have free health insurance (OHIP)... but I don't have any dental coverage and I have to pay for my own drugs/medication, etc. To answer your question, I guess the reason I don't have any additional coverage is that I just don't know where to start. For instance, what's a good company to buy a plan from?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Using Social Media Marketing

Hypotheticals, Scenarios and Foresight

Ten Steps to Go from Idea to E-book for Sale

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.