Even though C.O.B.R.A. coverage is often a good choice for a lot of families, former employees often accept their COBRA option when they should not. When compared to private health care coverage, C.O.B.R.A. can be too expensive, it can conclude too early and it can put someone else in control of your policy.

COBRA is often too pricey

COBRA is s short-term solution

C.O.B.R.A. is under someone else's control

C.O.B.R.A. is often too costly

The C.O.B.R.A. law gives you the right to be covered by a group insurance policy. One of the more costly misconceptions families and individuals have about health assurance is that group coverage policies are less expensive than private medicalcare assurance policies that you can buy on your own. While this is sometimes true, it isn't usually. In many states, health care assurance costs more when bought through an employer.

This is because of the cost of governmental mandates that apply to group health assurance policies that don't apply to private medical care Insurance policies. A company offering a group coverage policy may have to offer a policy to anyone regardless of their healthcare history. Insurance companies cannot drop an insured person from their individual and/or family health care assurance policy simply because their health has gotten worse after their policy's effective date, but they won't take new people with pre-existing conditions. This may mean that the insurance company's costs are much higher for their group assurance policies than for their individual health care Insurance policies.

You may be offered the group Insurance policy that you had before your employment ended or if your company has made changes in the policies they offer to their current employees, it may be a different medical policy.

C.O.B.R.A. is s short-term solution

In most situations, C.O.B.R.A. may be kept for a maximum of 18 months, however in certain scenarios, this time period can be extended to 36 months. This can mean that your coverage may end when you need it the most. A good private health care coverage policy may cover you until you reach the age of 65.

You may be healthy enough to qualify for a long-term healthcare insurance plan at the time when your employment ends but not 18 months later. If you or someone in your family come down with a disease and/or have some other medical issue that prevents you from buying a policy at the end of your C.O.B.R.A. eligibility

COBRA is under someone else's control

When you mail in your COBRA payments, you don't send them directly to your insurer. Howeverthis happens rarely, sometimes these companies will take COBRAmoney and never pay the insurance company.

If your company changes the plans that are offered to their current employees, they may also change the plans available to those eligible for medical care insurance because they have taken the C.O.B.R.A. option. This can mean that your plan may not cover you as well as it used to. You could suddenly be in the position of having a pricey plan that no longer covers you well.

Scenarios where C.O.B.R.A. is better than individual medical care insurance:

When C.O.B.R.A. is much less expensive than a individual insurance policy

A family and/or individual healthcare insurance policy isn't available to you

You're certain to get a healthcare Insurance policy before your C.O.B.R.A. eligibility ends.

There are situations where COBRA can be better option than a individual medical Insurance plan. If you cannot get a medicalcare plan on your own at a good price and you find that your COBRA is being offered at a good price COBRA may be your best options. This of course is also true if you can notacquire a COBRA plan because of a pre-existing medical issue. Another situation where COBRA can be a good option is if you will be eligible for Medicare or some other medicalcare plan before your C.O.B.R.A. eligibility will be over.

Author's Bio: 

Alston J. Balkcom has been an insurance agent since 1985. He has helped hundreds of people find Medical insurance.