Cobra is expensive

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Posted: Tue Nov 04, 2008 7:12 am Post subject: Cobra is expensive

Why does Cobra insurance charge so heavily upon us? _________________ Register Now to have your Insurance queries solved.

Purpleheaded08

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Posted: Tue Nov 04, 2008 10:05 am Post subject:

It doesn't. That's a misconception. When you go on COBRA you pay the full premium that your employer was paying. Most people with group health have no idea how much of the premium their employer was paying for them. _________________ Gary Spicuzza, SAFE Copyright 1956. No Rights Reserved. Self Appointed Financial Expert

GarySpicuzza

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Posted: Tue Nov 04, 2008 11:07 am Post subject:

Hi, you may find the COBRA expensive since you'll be paying the full premium of the coverage in addition to the 2% administrative charges. The premium for COBRA also depends upon your residing state, as people staying in the states other than New York, Massachusetts, New Jersey and Vermont may be able to pay lower premium on the COBRA coverage.

simon

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Posted: Tue Nov 04, 2008 11:59 am Post subject:

What I can tell you is that when you are on an employer provided health insurance plan, a portion of the premium is paid by your employer in addition to what you pay. Now when you are on COBRA, the responsibility of paying the entire premium amount rests on you. Your employer now has no more responsibility to pay the portion he/she was paying for your health insurance. This is the reason why you may feel that COBRA is expensive. In addition, when you are on COBRA you will also have to pay an administrative fee up to 2%. If you are planning to get COBRA you'll have to be enrolled under an employer provided health insurance plan. Are you enrolled?

sil

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Posted: Wed Nov 12, 2008 1:56 am Post subject:

If you don't plan on getting on another group plan and are healthy, I would recommend you purchase an individual policy NOW while you can. _________________ Joel D. Gardberg 954-428-4501

Gardberg

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Posted: Mon Nov 17, 2008 4:52 am Post subject:

I agree with Gardberg. While it's not always possible to just buy an individual policy because of underwriting, if you can, it's the way to go. COBRA policies are outrageously priced. If you're just waiting for another job to start and you'll get coverage in 90 days or so - then either ride it out or pick up a short-term policy. If you need something more permanent, then definitely shop it. I really like the high-deductible major medical policies with a tied-HSA account. But not everyone likes that sort of arrangement - so I don't push it too hard.