The COBRA Trap
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan.
The Good News – If you have a pre-existing health condition when you leave or lose your employer coverage you can continue the same coverage for 18 month (termination or resignation) 36 months (death or divorce).
The Trap – First of all COBRA coverage is generally much more expensive than purchasing your own individual coverage, secondly if you encounter a significant health condition (for example heart failure, blockage, diabetes, cancer etc) you then could be unable to purchase any reasonable priced coverage whenever you COBRA runs out (and it will run out) in 18 or 36 months. Your current carrier will then say GOODBYE. Now you are uninsured! The moral COBRA is nothing more than a glorified short term policy…remember you need to insure the car before you wreck it, or insure the body before you get sick!
Do not wait until it is too late…buy permanent individual coverage NOW that no one can take away from you when you need it most!
Free instant quote click here! 