Cobra Healthcare Coverage Vs Individual And/or Family Medical Assurance

October 4, 2013 Posted by kyu7

While C.O.B.R.A. Insurance might be a lifesaver for some individuals, individuals often take the C.O.B.R.A. option when they shouldn’t. If compared to private medical care assurance, COBRA can be pricey, it can be over too early and it can put someone else in control of your policy.

COBRA is often too pricey

COBRA is s short-term solution

C.O.B.R.A. 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 insurance policy. One of the biggest misconceptions individuals have about healthcare Insurance is that group insurance policies are less expensive than individual and/or family health care insurance policies that you can purchase on your own. While this is sometimes true, it isn’t usually. In many states, health care coverage costs more when bought through an employer.

This is because of the cost of governmental mandates that apply to group health care insurance policies that don’t apply to private medical care 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 family and/or individual health Insurance plan simply because their health has gotten worse after their policy’s effective date, 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 family or individual healthcare assurance policies.

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

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

In most scenarios, COBRA may 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 end when you need it the most. A good family and/or individual health assurance policy may cover you until you reach the age of 65.

You may be healthy enough to qualify for a long-term health Insurance plan at the time when your job ends but not 18 months later. If you or someone in your family contract an illness or have trauma that prevents you from buying a policy at the end of your COBRA eligibility

COBRA is under someone else’s control

When you mail in your COBRA payments, you send them to your former company. Although this happens rarely, sometimes companies will take your money 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 Insurance because they have taken the COBRA option. This may mean that your policy may not cover you as well as it used to. You might suddenly be in the position of having an expensive plan that no longer covers you well.

Scenarios where C.O.B.R.A. is better than individual medicalcare insurance:

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

A family or individual medical care coverage plan isn’t available to you

You’re assured a medical assurance plan before your COBRA eligibility ends.

There are situations where COBRA is a better option than a family and/or individual medical care coverage plan. If you are not able to purchase a healthcare policy on your own at a reasonable rate and you find that your COBRA option isn’t too pricey C.O.B.R.A. may be your best options. This of course is also true if you cannotpurchase a C.O.B.R.A. plan because of a preexisting medical condition. Another situation when COBRA can be a good option is when you will be eligible for Medicare or some other medicalcare policy before your C.O.B.R.A. eligibility will end.

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