Important Components of COBRA Health Insurance

In today's economy, there is very little job security.What makes COBRA unique from other forms of
Unfortunately, one of the secondary effects of losingmedical and health insurance plans is that COBRA will
your job is that you lose your health coverage as well.continue to cover any pre-existing medical conditions
Thankfully there are programs in place that canthat were approved and covered by your original
extend your health coverage for up to 18 monthshealth plan. If you happen to be afflicted with a medical
following a termination, career change, or evencondition, COBRA will cover these conditions. Other
retirement.health insurance providers may not cover pre-existing
COBRA insurance was enacted into a law to protectconditions, potentially leaving major conditions to go
you from losing your healthcare in scenarios such asuntreated.
getting fired or laid off. Officially known as theWhy COBRA is a Wise Choice
Consolidation Omnibus Budget Reconciliation Act, it isThere are many reasons why applying for COBRA is
designed to provide medical insurance coverage fora wise decision. Apart from the fact that you are
employees and their families even after they'vemedically insured and covered for a period of 18
severed ties with their employer. People must alsomonths after leaving your job, you can maintain all the
understand that COBRA is a law, not an insurancebenefits you once received from the same health plan
package.insurer you had before you left your job. As mentioned
Before COBRA medical insurance was enacted tobefore, COBRA covers any pre-existing or recent
cover medical needs of terminated employees, themedical problems, which may not be the case with
group health plans of terminated workers and thoseother health insurance companies.
who changed employers were immediately canceled.If you lose your job and rely heavily on your health
With the advent of COBRA insurance, employeesinsurance plan for sharing the cost of expensive
who have been fired or laid off will receive 18 monthsmedications, applying for a COBRA policy is an
of medical coverage of the same health insuranceexcellent choice. COBRA covers the cost of
policies their employers gave them.prescription drugs, as well as other services such as
However, the benefits of COBRA medical insurancematernity benefits and accident insurance.
are available only as a group plan and not as individualSince many individuals cannot afford the COBRA
health coverage. You need to be a part of a healthoption offered by their employers, there are COBRA
plan group of 20 or more employees for you to bealternatives that are designed for people who are in
eligible to apply for COBRA medical insurance policies.good health and with no pre-existing medical condition
The Price of COBRA Health Insuranceand do not need to take expensive medication. These
The price of a COBRA policy is also significantly higheralternatives come in the form of individual and family
than the total price of the medical insurance policyhealth plans.
bought by your employer. The total cost of a COBRAWhile COBRA provides an opportunity for individuals
insurance package is the total amount of your groupto retain health care insurance, individual health
healthcare plan plus 2% administrative fees. COBRA iscoverage plans are much more reasonable as it
more expensive than other group plans, but alsopertains to cost.
provides peace of mind knowing that your family orThe best thing you can do is to research your health
individual health coverage plan is extended to coverinsurance coverage options before you decide on the
you or your family in case of emergencies or severebest health plan. It is important to make a wise decision
health issues.since this health plan may be with you for a while!