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Personal health insurance prices & policies compared to COBRA plans
If you are healthy, there is no reason to extend your benefits under COBRA, because with private health insurance:
- Premiums are lower
- Little legislative risks
- Don't have to wait on notification
- No expiration of benefits
- You can only be canceled for nonpayment
- More flexibility with doctors
- Don't need a "qualifying event" to become eligible
The cost of COBRA is high because
- The government doesn't set a cap on the premiums
- Like your exisitng group health, companies must cover everyone, regardless of health
- Instead of ending a policy within 30 days, a company doing group health must give you coverage for a period of 18 to 36 months
- The employer no longer pays the majority of your premiums
Ways to save on private health insurance:
- Higher copayments
- PPO instead of HMO
- Higher out of pocket max
- Compare 3 companies
- Use an independent agent
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