Should You Reject C.O.B.R.A.? By Alston Ballkcom At Isnare.com Ezine Articles

When your job ends, C.O.B.R.A. insurance may be the right choice to cover yourself. It may also be a very pricey error. Knowing how to decide whether to take a former employer's C.O.B.R.A. offer may help you save you a lot of money. COBRA can be priced hundreds more each month when compared to similar non-COBRA insurance options that may offer nearly identical or sometimes better benefits.

C.O.B.R.A. could be your best option when:

Individual health insurance isn't an option for you

Individual healthcare coverage would cost significantly more

You're guaranteed approval from a health care coverage plan when C.O.B.R.A. ends

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

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

However, in certain scenarios, COBRA will cost less than a policy that you might purchase on your own. If that difference is great enough, you might want to consider the COBRA option.

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

COBRA might be a expensive mistake in many other scenarios. This is because:

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

COBRA could cost you more than a individual and family health care assurance policy

The biggest issue with accepting COBRA isn't the cost when compared to a similar private health care insurance plan. 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 COBRA ends, this issue shouldn't concern you. However, there is always the possibility that you will develop a serious medical condition during the time that you are covered by COBRA. This could cause any new coverage company to reject your application.

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

Many people fail to even check prices for other health care insurance options. COBRA healthcare cover is often the most expensive option. COBRA can cost much more when compared to a individual medical coverage policy!

Be sure to shop around for prices and benefits. Very often your COBRA medical plan insurer will have a similar policy non-C.O.B.R.A. policy that you are eligible for.

COBRA coverage may be an excellent option in certain situations. However you should investigate other options because purchasing C.O.B.R.A. if there are better insurance options available to you might be a costly mistake.

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