COBRA Is it for you?
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COBRA: accept or find an alternative?
COBRA stands for “Consolidated Omnibus Budget Reconciliation Act of 1985” which allows the extension of “Group” health coverage to terminated employees and their families for up to 18 to 36 months.
This law does not require the employer to pay the cost of the continued group coverage; the terminated employee can be required and in most cases are required to pay the premium, which may be up to 102% of the premium that would otherwise be charged.
The recommendation would generally be to accept COBRA benefits if you have any pre-existing medical condition that would otherwise preclude you from being accepted by an individual type plan but if you are healthy and with no pre-existing medical condition, you would save money on your premiums and have similar if not better coverage than the plan offered by your employer.
One excellent option is to consider what is known as “Short Term” medical insurance, this type of plan offers major medical insurance benefits for a defined amount of time, usually 6 – 12 months and is less expensive than your standard major medical plans.
