subject: When To Opt For Cobra [print this page] COBRA is an effort of the Congress, who in 1985 passed a insurance act that simply allows qualifying employees to continue receiving their health insurance from the company they were employed by even though they either quit on their own or were fired by the company who employed them. There are numerous insurance options available to these people who must decide if they want to participate in this program or if they would rather seek out a private insurer on their own to get their health insurance needs covered. This decision is generally based on how beneficial the program would be to the former employee.
COBRA is a good option when the main issue is money available for continue health coverage. It is definitely less expensive than private insurance. The former employees are entitled to a full 18 months of health insurance coverage after they have left their former employment. In the case of an employee with a disability, they are allowed to receive an additional 11 months for a total of 29 months of coverage. This time frame is a excellent chance for any ex-employee to find a new job that has insurance coverage benefits. The plan also has dental coverage included. Most other types of health insurance policies don't have dental coverage as part of the package, this extra option is something that has to be purchased separately.
In many cases it is not uncommon for most health insurance companies to deny coverage for pre-existing conditions that employees might have. The beauty of the COBRA plan is that it provides immediate health insurance coverage for anyone in desperate need of continued health care coverage and denial for pre-existing conditions is not an option. In a private insurance company scenario, if a private insurer will even insure pre-existing issues, it is usually very expensive. This policy will save the insured some serious money.
COBRA has so many good options that deciding which one is the best is a task all its own. It provides coverage to the employee, their spouse and children. If any member of the family depends on medical coverage, the employer COBRA option is a must, especially if it is really the only one at the time. The COBRA benefits extend beyond the employee and stays in effect to surviving family members in the event of the death of the employee or even an ex-spouse in a legal divorce matter. Also if a child is getting ready to have a age limit birthday, the policy will extend the coverage for another additional 18 months.
Another important fact that separates a COBRA policy from most all private insurance polices is that pregnancy is not considered a pre-existing condition. This is very important for any employee or spouse that is pregnant and they should sign up on the COBRA policy. This also provides coverage for the initial doctor visits that the infant will have.
If you are a person who recently quit your job or have been part of a company layoff, you have a very good health care coverage option available to you. The many benefits offered by a COBRA policy cannot be ignored and COBRA is much less expensive and budget friendly than a private health insurance policy. Plus COBRA extends its benefits to the employee's spouse and dependents as well as provides coverage in the unemployed gap that sometimes happen.
