COBRA Health Insurance

Posted in Health Insurance

January 14th, 2009

One of the benefits of health insurance coverage from an employer is that your medical costs are covered. Most employees are eligible for their employers plan and may enroll in many various types of health insurance coverage. Once youve left the job, however, your health insurance coverage options may become limited. One such option is COBRA.

What Does COBRA Stand For?

COBRA stands for The Consolidated Omnibus Budget Reconciliation Act of 1985. COBRA is a law that makes it possible for people to continue with the health care coverage provided by their employer for up to 18 months after the job has been terminated. It also covers family members and dependents who are insured under this health plan. It is an extremely helpful, temporary solution for those who may need medical coverage while looking for another job or insurance situation.

The Pros and Cons of COBRA

No one likes to be without health insurance. It is a vulnerable and sometimes difficult situation to be in. The benefit of COBRA is that your health insurance needs may be seamlessly covered from one job to the next. There is no need to shop around for a temporary solution, as one is built into your current health insurance plan.

One of the drawbacks of COBRA is the cost. COBRA may be quite a bit more costly than finding a temporary solution. Your current health care provider may be banking on the fact that you dont wish to take the time and energy in finding a temporary solution. In this case, they can provide you with your current care at a higher premium.

Most people that take advantage of COBRA know that they wont be using it for long. It is only meant as a quick insurance fix until a more permanent solution may be found. Although it may be more expensive, it is worth the cost by providing the security of being eligible for temporary health insurance.