Alternatives to COBRA Medical Coverage

After you are either laid off or leave your employer on your own, they will probably offer you COBRA medical coverage. COBRA health insurance allows you to keep the group health insurance coverage that you had when you were employed.

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COBRA is often the most cost-effective way to get coverage. However there are many circumstances where one can find cheaper coverage through an individual or family health insurance policy that is not connected with COBRA.

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COBRA allows you to have medical insurance without any investigation of your health history. So long as you accept the plan during the election period and pay the monthly premiums on time you will be able to keep your insurance regardless of your medical history.

COBRA health insurance is only offered if you were enrolled in the group medical insurance plan when you were employed. If you were terminated for gross misconduct, your employer does not have to offer COBRA to you. If your employer has fewer than 20 employees COBRA Insurance is not mandatory.

COBRA Insurance is temporary coverage. In most circumstances a former employee can only keep coverage for 18 months. In certain situations, you can keep COBRA for up to 36 months.

There might lose your right to COBRA before your eligibility would otherwise run out. Failing to pay the monthly premiums on time will result in your being dropped from COBRA Insurance. You can also be dropped if your former employer no longer offers a group health insurance contract to its current employees. You will lose the coverage if you accept a group health insurance contract that covers your any pre-existing conditions you may have. If you become eligible for Medicare your COBRA Insurance will end.

One of the shortcomings of COBRA medical coverage is the fact that it is a short term coverage. When your eligibility ends you will have to apply for coverage through another policy. There is no guarantee that you will qualify when that time comes. This means that your COBRA medical coverage option can mean that you cannot qualify for health insurance at some point.

If you have 18 months of eligibility for COBRA Insurance, you have a year and a half where a sickness or an accident can render you medically uninsurable for your next health insurance contract. For this reason it may be advisable to buy a health insurance contract that you can keep long term as soon as your employment ends.

COBRA health insurance is often twice the price than individually underwritten health care insurance plans. Insurance companies often base the rates they charge to groups largely on the claims that receive for that group. When you buy an individual or family contract, the rate will be based on the claims they expect to receive for you or you family.

This can result in a your being charged a much lower premium. If you and your family are in good medical you will probably pay as little as half the price you would have paid for COBRA Insurance.

You may find that the same medical insurance carrier that provides group insurance to your employer will also insure you on a non-group basis. This can mean that you can tap into the same network doctors and hospitals if you switch to one of their individual or family policies.

You should explore your options with alternatives to COBRA Insurance whether even if are already insured by a COBRA coverage. You do not have to wait until your eligibility ends to switch. If get a coverage from another insurer, you can drop your COBRA health insurance at the end of the month.

Alternatives to COBRA Medical Coverage

You can find cheaper COBRA alternatives by getting free quotes for CA health insurance or CT medical insurance on the author, Alston J. Balkcom's website.

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