COBRA is not a health insurance plan, but rather the US federal law that extends group health coverage in some cases for ex-employees and their families. Now not all US companies have to comply with COBRA. For instance it usually only applies to companies with at least 20 employees. On the other hand, in some cases, disabled people may enjoy more benefits than fairly healthy people because it is harder for them to obtain other health insurance, and in some cases, another job.

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How much does COBRA cost?

If you understand that COBRA is a law, and not really a health insurance plan, than you can see this question does not really make sense. A better way to phrase this question would be: How much does my old company’s COBRA plan cost? The answer is, of course, it depends. When an employee works at a job, they may contribute towards the cost of the health insurance. But the company also may contribute, and sometimes the compay contribution is much larger than the employee’s contribution!

So, when many people leave a job, they are shocked to realize that the required premium to continue coverage is much higher than they were used to paying. A typical example may have an employee contributing $250 a month for their family’s health insurance. The company may contribute another $750. When the employee leaves his company, he or she may be shocked to learn that coverage will now cost $1,020 a month! That is $1,000 a month for the entire health insurance premium, and another 2% allowed administration fee!

Should I take the COBRA coverage?

If you or another covered family member has a health condition, needs medical services in the future, or is pregnant, you should strongly consider keeping the coverage you have. It may be very diffiult, or impossible, to replace until other group coverage kicks in. Of course, every state has high risk coverage and low income coverage, but you need to make sure you qualify, and have another policy in your hand, before you cancel what you have!

If you are pretty health, then you may find cheaper rates on the individual health insurance market.It is a common misconception that group rates are cheaper. They really aren’t. Individual plans can cherry pick their customers, and are able to offer lower rates!

Again, make sure you have another in-force policy in your hand before you cancel any existing coverage.

You can always use our fast, safe, and free quote forms to compare insurance rates!

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