COBRA Health Care insurance vs Family or Individual Medical Care Insurance

COBRA Health Care insurance vs Family or Individual Medical Care Insurance

Although COBRA insurance can be a lifesaver for some individuals, people too often take the C.O.B.R.A. option when there are better choices. If compared to private medical insurance, C.O.B.R.A. can cost too much, it can conclude too early and it can put someone else in control of your policy.C.O.B.R.A. is often too costly

COBRA is s short-term solution

COBRA is under someone else's control

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

The COBRA law gives you the right to be covered by a group coverage policy. One of the biggest misconceptions families have about medicalcare coverage is that group insurance policies are less costly than individual and/or family medicalcare Insurance policies that you can buy on your own. Although this is sometimes true, it isn't usually. In some states, health care coverage costs more when purchased through an employer.

This is because of the cost of governmental mandates that apply to group healthcare Insurance policies that don't apply to private medical insurance policies. A company offering a group assurance policy may have to offer a policy to anyone regardless of their medicalcare history. coverage companies cannot drop an insured person from their individual and/or family health care assurance policy simply because their health care has worsened after they applied, but they will usually be selective at time of application. This can mean that the insurance company's costs are much higher for their group assurance policies than for their family or individual healthcare insurance policies.

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

COBRA 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 can be extended to 36 months. This may mean that your coverage may conclude when you need it the most. A good private medical care insurance policy can cover you until you reach the age of 65.

You may be healthy enough to qualify for a long-term health care coverage plan at the time when your employment ends but not 18 months later. If you develop a condition and/or have a car accident that prevents you from buying a plan at the end of your COBRA 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 these companies will take COBRAmoney and never 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 medical Insurance because they have taken the COBRA option. This may mean that your plan may not cover you as well as it used to. You could suddenly be in the position of having an expensive policy that no longer covers you well.

Situations where COBRA is better than family or individual medicalcare insurance:

When C.O.B.R.A. is much less pricey than a individual or family Insurance plan

A individual and/or family medicalcare insurance plan isn't available to you

You're assured a healthcare insurance policy before your C.O.B.R.A. eligibility ends.

There are situations where C.O.B.R.A. may be better option than a individual or family health care assurance plan. If you cannot get 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 COBRA may be your best options. This of course is also true if you can'tget a COBRA policy because of a preexisting medical condition. Another situation when C.O.B.R.A. can be a good option is if you will be eligible for Medicare or some other healthcare plan before your C.O.B.R.A. eligibility will be over.


Alston J. Balkcom has been a licensed insurance agent since December of 1985. His health insurance agency services Connecticut residents who do not qualify for health insurance through an employer

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