Why Consider A Cobra Policy?

COBRA, an insurance act passed by Congress in 1985, states that qualifying employees are permitted to continue their health insurance through the company when the employee quits or is fired. With the numerous insurance options available, people have to decide whether to opt for COBRA or seek a private insurer. Making a decision to use it depends on how beneficial the program is to the former employee.

If money is going to be an issue, COBRA is a good insurance option. It costs less to use it than it does to buy private insurance. Employees are entitled to continue their health insurance coverage for up to 18 months after they leave their job. In some circumstances, like a disability, employees are allowed up to 29 months of coverage. The time frame may give employees a chance to find a new job that provides insurance coverage. This policy would also include dental coverage. Because most health insurance plans do not include dental, a separate dental insurance policy would need to be purchased.

Pre-existing conditions is a issue that many employees worry about because most health insurance companies will deny coverage simply because they can. A COBRA plan will override this insurance whim option and provide immediate health insurance coverage, especially for anyone who simply has to have some type of affordable health insurance and any pre-existing condition is no reason of denial. Private insurance companies are notorious for not covering pre-existing conditions and if they do offer coverage, it is very very expensive; much more so than a COBRA policy.

COBRA does not just cover the employee; it also provides coverage for the employee's spouse and children. If the employer was the only insurance coverage option, use COBRA. It is worth it if any family member is dependent on medical coverage. COBRA benefits extend to the employee's dependents should that person die and even ex-spouses should the employee get divorced. If a child passes the health coverage age limit, the policy extends coverage for another 18 months.

It is important to note that a COBRA policy is so unlike a private insurance policy. Where a private insurer considers a pregnancy pre-existing, a COBRA does not. This is important for any employee who is pregnant or if a spouse is expecting and a good reason to consider signing up on the COBRA plan. The infant will also get coverage for the initial doctor visits which are very important and timely.

In a quick recap about COBRA and why it should be seriously considered as a option for an employee recently laid off or quit, begins with examining the many benefits when they sign up for the policy. It is very cost effective between jobs if health care coverage is a must, much less expensive than a private insurer and the benefits expend to the dependents and spouse should something happen to the ex-employee.

By: Ethan C Kalvin

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Whether it is COBRA or some other type of Health care insurance the security is necessary. Before you Buy Health Insurance check out your choices on the web.