COBRA has been a blessing to some and out of financial reach for many.
COBRA Costs
Another huge problem with COBRA is that you are at the mercy of an employer you no longer work for to choose the health plan options available to you. The trend is towards more cost sharing, including higher deductible plans. So your choices are very limited to COBRA. In many instances, the employers are ending the group health coverage in anticipation of the new health care mandate.
Are you from the future?
A key to playing COBRA is anticipating the future. Which when it comes to your health, you do have some indicators. People with pre existing conditions are not the only ones who should elect COBRA; If you are morbidly obese, have a family history of cancer or diabetes, lead a high risk lifestyle, engage in dangerous hobbies, or have a hazardous job. You know your body. And if you have an undiagnosed medical condition, ENROLL! Then get it looked at.
Life Insurance does not fall under "medical care" so it's not covered under COBRA.
Gross Misconduct
Getting fired for gross misconduct, often while committing
a crime is a huge no no
in this economy. It could virtually guarantee you will not to be re-hired
anywhere that checks references
or your background history.
Companies may fight your unemployment claim if you are fired for a serious infraction of company policy.
Since COBRA is considered short term, use it to bridge a gap between employers group insurance.
Health Insurance Costs
The price of COBRA is reflective of the price of health insurance overall: Outrageous! When health insurance premiums go up 10% per year, EVERY YEAR, it will become unaffordable.
When you leave your employer, call the insurer and ask them to convert. My wife did this when she left her job, and Kaiser converted her plan to non business, which was much cheaper.
Deductible Plans to the Rescue
More people are mostly looking at higher deductible plans since 100% HMO coverage is the most expensive you can get. Deductibles of $2500 and $5000 are common, and even $10,000 deductible / catastrophic plans are becoming more popular.
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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