COBRA Medical insurance vs Family or Individual Healthcare Insurance

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While COBRA assurance is often a good choice for a lot of families, people too often take the C.O.B.R.A. option when they shouldn't. If compared to private medical assurance, C.O.B.R.A. can cost too much, it can be over too early and it may put someone else in control of your policy.

COBRA is often too pricey

COBRA is s short-term solution

COBRA is under someone else's control

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

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

This is because of the cost of governmental mandates that apply to group health assurance policies that don't apply to family or individual health care assurance policies. A company offering a group assurance policy may have to offer a policy to anyone regardless of their health care history. insurance companies cannot drop an insured person from their individual health insurance plan just because their health care has worsened after they left their job, but they won't take new people with pre-existing conditions. This can mean that the insurance company's costs are much higher for their group coverage policies than for their individual medical care Insurance policies.

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

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

In most scenarios, COBRA can be kept for a maximum of 18 months, although 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 individual healthcare insurance plan may cover you until you reach the age of 65.

You may be healthy enough to qualify for a long-term medicalcare Insurance policy at the time when your employment ends but not 18 months later. If you or someone in your family contract an illness and/or have some other medical issue that keeps 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. Howeverthis 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 health care coverage because they have taken the C.O.B.R.A. option. This may mean that your plan may not cover you as well as it used to. You might suddenly be in the position of having a pricey policy that no longer covers you well.

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

When C.O.B.R.A. is much less pricey than a individual insurance policy

A family or individual health Insurance plan isn't available to you

You are assured a medical care insurance plan before your C.O.B.R.A. eligibility ends.

There are situations where C.O.B.R.A. can be better option than a private medical assurance policy. If you're unable to get a health plan on your own at a good price and you find that your COBRA option isn't too pricey COBRA may be your best options. This of course is also true if you can notget a COBRA policy because of a preexisting condition. Another situation where COBRA can be a good option is when you will be eligible for Medicare or some other medical care plan before your COBRA eligibility will be over.

Article Source: http://depositarticles.com/

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

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