If you are relatively young and in good health, you should be able to get a much cheaper health plan from many insurers.
Group health insurance by definition has to cover everyone in the company, and may cover a lot more than you’d be willing to pay for yourself.
With COBRA:
No "post claim underwriting” to make sure you didn't have a pre existing condition;
You can take your time making the decision. You have 60 days after losing your job before you have to elect COBRA, and another 45 after that before you have to pay. If you do elect, this is retro-active and covers you from the date you lost your job;
If you’ve been on COBRA the entire time period, you’re almost certainly HIPPA eligible which means that your state is required by federal law to offer you some sort of guaranteed issue individual plan;
You can elect COBRA for independently yourself, your spouse or children;
Subsidized premiums if you lost your job before June 1st, 2010 and you were involuntarily terminated;
$110 per day fine if the employer does not mail you the paperwork;
18-36 month expiration date;
You may have to pay multiple months initially to avoid lapsing; and
There is no shopping with a multiple carriers and agents. Only 1-2 open enrollment periods per year.
With Private health insurance:
You can be denied coverage, even after appeal, so you may have find a short-term alternative;
Women may pay dramatically higher rates, especially in child-bearing years. Maternity may not be covered;
Plans can be full of legalese;
Only by following strict guidelines will those people who have pre-existing conditions be able to get health insurance from a A rated carrier;
Insurance companies can "Adjust" the policy coverage. People who are healthy when the terms change simply go to another low cost plan, while people who became I’ll are then stuck with a now high cost plan;
If you had a C-section previously, nobody will consider giving you maternity coverage.
Self employed with pre existing conditions have no few options;
No 18-36 month expiration date;
You can buy a catastrophic health plan with an HSA for much less;
Everyone with good health will qualify regardless of employment situation; and
More paperwork and intrusion into your medical records and health history.
Craig Casey is an Writer, Coach, Blogger, Husband, and Former Health Insurance Agent helping people on the web since 1999 with their health insurance problems.
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