Should you Reject C.O.B.R.A.?

If your employment ends, C.O.B.R.A. cover might be the best option to cover yourself. It may also be a very big mistake. Knowing whether to accept your previous company's COBRA offer can save you thousands of dollars. C.O.B.R.A. can cost hundreds more each month when compared to similar non-C.O.B.R.A. options that offer similar or sometimes better benefits.

C.O.B.R.A. could be the best option if:

Individual healthcare assurance isn't available to you

Individual healthcare coverage would cost significantly more

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

If you or a family member has a major illness, accepting your C.O.B.R.A. option might be your best and only viable choice. Private health care insurance can not be an option for you and your COBRA health coverage plan will probably cover the medical care condition.

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

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

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

COBRA might be a pricey error in many other scenarios. This is because:

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

C.O.B.R.A. might cost you more than a private medical cover policy

The biggest issue with accepting COBRA isn't the cost when compared to a similar individual and family healthcare cover plan. The biggest problem is the tens of thousands of dollars you could have to pay out of your pocket for health 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 conce
you. However, there is always the chance that you will develop a serious healthcare condition during the time that you are covered by COBRA. This might cause any new cover company to reject your application.

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

Many people fail to even check prices for other medical insurance options. C.O.B.R.A. medical insurance is often the most expensive option. C.O.B.R.A. can cost two times as much as a private healthcare cover plan!

Be sure to shop around for prices and benefits. Very often your COBRA medical care plan insurer will have a similar policy non-COBRA policy that you're eligible for.

COBRA coverage can be the best choice in certain scenarios. However be sure to look at multiple insurance options because purchasing COBRA when there are better insurance options available to you might be a pricey mistake.