When is Cobra Your Best Insurance Option?

When leaving an employer, you may run into the issue of losing health insurance. If you decide to take Cobra, you usually can keep your current employer policy for up to 18 months. The premium will usually increase due to the employer not chipping in anymore.

So when is Cobra your best option?

The two main factors are going to be Health and Cost.

•HEALTH

If you are going through treatment or have a pre-existing condition that requires maintenance, coverage for this is probably important. Assuming you don’t qualify for Medicaid or Medicare, Cobra in this case is still on the table.

•COST

So if we’re assuming you have a pre-existing condition and you don’t qualify for Medicaid or Medicare, our options are usually down to Cobra and ACA Plans (Obamacare). In many cases with the ACA plans, folks will receive a tax-credit (subsidy) to help significantly lower the cost on their insurance premiums; however this is based on several factors including household size and income. If you do not qualify for a tax-credit, then Cobra may start to make more sense. Factors such as premium cost, deductible size, upcoming procedures/treatments must be taken into account.

Depending on where you live, there are usually severally other options (underwriting may apply) that may be more affordable for healthier individuals who do not need pre-existing conditions covered. If you are about to lose health coverage or considering Cobra, you should always speak with a licensed insurance professional.