C.O.B.R.A. Health Care insurance vs Private Medicalcare insurance

Aug 14 07:51 2009 Alston J. Balkcom Print This Article

Although COBRA coverage can be a good option for a lot of former employees, former employees too often take their COBRA option when there are better choices.  If compared to family or individual health assurance, COBRA can cost too much, it can conclude too early and it can put someone else in control of your policy.

Although COBRA coverage can be a good option for a lot of former employees,Guest Posting former employees too often take their COBRA option when there are better choices.  If compared to family or individual health assurance, COBRA can cost too much, it can conclude too early and it can put someone else in control of your policy.

COBRA     is often too costly

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

COBRA is under someone else's control

C.O.B.R.A.     is often too costly

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

This is because of the cost of governmental mandates that apply to group health coverage policies that don't apply to individual medicalcare assurance policies.  A company offering a group insurance policy may have to offer a policy to anyone regardless of their medicalcare history.  insurance companies cannot drop an insured person from their individual or family healthcare Insurance plan simply because their healthcare has gotten worse 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 insurance policies than for their private health coverage policies.

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

COBRA is s short-term solution

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

You may be healthy enough to qualify for a long-term health assurance policy when your employment ends but not 18 months later.  If you contract an illness or have a car accident that keeps you from buying a plan at the end of your COBRA eligibility

COBRA 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 companies will take your money 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 medical Insurance because they have taken the COBRA option.  This can mean that your plan may not cover you as well as it used to.  You could suddenly be in the position of having a costly policy that no longer covers you well.

Scenarios where COBRA is better than individual and/or family medical Insurance:

If COBRA is much less costly than a individual Insurance policy

A family and/or individual medical care assurance plan isn't available to you

You're guaranteed a health care assurance plan before your COBRA eligibility ends.

There are situations where COBRA is a better option than a private medicalcare insurance plan.  If you can't buy a medical 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 aren't able toacquire a C.O.B.R.A. plan because of a pre-existing medical issue.  Another situation where C.O.B.R.A. can be a good option is if you will be eligible for Medicare and/or some other healthcare plan before your C.O.B.R.A. eligibility will be over.


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Alston J. Balkcom
Alston J. Balkcom

Alston J. Balkcom has been an insurance agent since 1985.  He has helped hundreds of families find Medical insurance.

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