Understand the benefits and disadvantages of COBRA health insurance coverage
COBRA insurance coverage is a program that was passed by the federal government in 1986 as part of the Consolidated Omnibus Budget Reconciliation Act. The law provides that people who have recently lost their jobs due to termination, lay-offs, quitting, retirement, or had their hours reduced, can choose to continue their group health insurance coverage for 12-18 months in most cases as long as they pay the entire premium and sign up within the election window. This means that with COBRA insurance coverage, you can choose to keep the exact same health insurance plan. This allows individuals and families to not immediately have to worry about paying very expensive medical costs out of pocket, experience a lapse of coverage, or having to search immediately for another insurance plan. With that said, there are many advantages and disadvantages of COBRA insurance that are important to consider when thinking about whether or not COBRA insurance is the right plan for you.
Whenever you are weighing the advantages and disadvantages of COBRA health insurance, it is always important to fully understand all of the options in front of you. It is recommended that you always get health insurance quotes, or estimates, for multiple plans and compare those to your COBRA insurance option. This will help you find the best plan, at the best price.