COBRA insurance vs. a Regular Individual Health Coverage Plan
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As mandated by law, COBRA insurance is designed to provide the continuation of all medical and health insurance coverage to an employee along with his or her family in the event of termination from work or change of profession.
COBRA medical insurance is not an insurance carrier. Rather, it is a law tailored to protect employees when their company no longer shoulders the payment of their insurance policies. COBRA medical insurance is open only to insurance policy holders who are part of a 20-member or more health insurance group.
The Cost of COBRA
A COBRA insurance policy differs starkly with individual health coverage. First is the cost. A COBRA policy is more expensive than most individual healthcare plans. Another is the duration of the coverage. While an individual health coverage plan can be arranged on a temporary or permanent basis, COBRA only extends a group insurance policy by 18 months.
Both also have sets of contrasting features in terms of benefits. COBRA offers a lot of benefits too, such as continuation of coverage for a pre-existing or a recently acquired medical condition. Individual health coverage providers do not always offer such coverage.
Benefits of COBRA
COBRA especially benefits terminated employees and those who have health problems. Likewise, individual health insurance policies also have their benefits: they provide much needed coverage for individuals at a rate that is more reasonable than COBRA insurance.
COBRA - A Temporary Solution
Still, the fact remains that COBRA is designed to buffer employees from medical expenses that might sprout during a brief period of unemployment. It is best that a person file for another insurance policy before the 18 months is up so they can stay protected from unexpected medical expenses.