Deciding if you want to sign up for COBRA insurance can be a tricky decision and one that no family should take lightly. Give the importance of health insurance, as well as the high cost of COBRA insurance, it can be a hard decision about when COBRA health insurance is the best option or when you should choose a different plan. There are certain considerations that anyone should think about when thinking about COBRA health insurance.
COBRA health insurance is a law that was passed by the federal government that allows an individual or family to maintain their health insurance plan for up to 18 months in most cases after losing, quitting, or retiring from their job. Under the COBRA health insurance law, people who meet the federal COBRA requirements can keep the exact same plan as long as they pay the full premium plus a 2% administration fee.
COBRA Insurance is Likely the Best Choice For Your If…
- The employee, their spouse, or their dependent children have a preexisting health condition that most likely will not be covered under a new health insurance provider.
- People looking for a very short term solution because they know they will soon be employed with health insurance. Some private plans require minimum contracts.
- People over the age of 50 who are more difficult to insure privately due to more health problems and longer acceptance risks
- Anyone who is pregnant or has a pregnant spouse
- People planning on getting pregnant soon or whose spouse is planning on getting pregnant soon
- Anyone who was recently declined when submitting a private health insurance application
- People who have been in an accident or had serious medical needs in the last 30-60 days
- People using expensive medication
- People who have a history of health problems or recent health problems
- Anyone who is looking for continued, unchanged health insurance coverage and can afford the costly premiums
- People who live in states without competitive health insurance markets like NY and NJ
COBRA Insurance May Not Be the Best Choice For You If…
- Do not have any preexisting health conditions
- Are generally healthy and relatively young
- Can sign up for your spouse's health insurance plan
- Can sign up for a state sponsored health insurance plan like Medicaid
- Can sign your dependent children up for state sponsored children's health insurance coverage
- Know that you will not be having any medical procedures done in the near future
- Reside in a place with a competitive private health insurance market like Michigan, Georgia, Illinois, Oregon, California, Texas, Florida, or Washington
- Can sign up for an alumni, professional, or fraternal organization's insurance coverage
- Are under 26 years old and can sign up for your parent's health insurance plan