The cost of COBRA insurance is often much more than the low cost medical insurance through a non-group private health insurance policy. This is often true even when the coverage is offered by the same insurer.
If you have always received your insurance coverage through your employer and never purchase medical insurance on your own, you may believe that your group health insurance plan is your best option.
Many people want to know how to apply for COBRA insurance but never ask whether or not COBRA is their best option.
How does COBRA insurance work?
COBRA is a temporary extension of your group health insurance. Typically this extension lasts for 18 months, but in some circumstances this period can be longer. When you are on COBRA you will probably pay the full cost of your insurance. Your employer is unlikely to subsidize your costs.
Often people are lead to believe that group coverage is cheaper because they are unaware that their employer subsidizes their premiums. They are often unpleasantly surprised when they find out how much it really costs.
But often they pay it anyway. They don’t know that group health insurance is usually more expensive than non group or individual health insurance. Many people only shop insurance after COBRA ends.
When they wait until their 18 months is almost over to get the prices for other policies, they are often quite upset with themselves. Most of the insurance coverage that people get through their benefit packages at work is also available to them on a non group basis. You can purchase life insurance or dental insurance for the unemployed without going through an employer.
Be sure to get quotes for health insurance today. You may be surprised to find that your cost for COBRA insurance is higher than you would pay with another policy that provides the same coverage.