COBRA insurance 2

[rlee53]

If I resign my full time position to start a consulting business, is COBRA health insurance available to me and my family, or is it only available to those that are let go?

 

[Pressed]

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[URL unfurl="true"]http://info.insure.com/health/cobra.html[/URL]

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[tygerdawg]

There are other options besides COBRA. I was laid off with a severance package that included six months of COBRA and then started a consulting business. After COBRA ran out I got health bennies thru some "National Association of the Self Employed" or something like that. Not very useful, and the insurance was underwritten by MEGA Health & Life. For me, Wife, & Kid reasonable (not great) benefits were $600+/month. This was 5 yrs ago.

TygerDawg

 

[TheTick]

COBRA is usually prohibitevely expensive. I skipped COBRA and went straight to my insurance agent (State Farm) to set up my own. Monthly cost turned out to be less than 25% of COBRA.

Currently I have a major medical policy plus a supplemental for emergency room visits and other things. A great advantage of my current arrangement is that I actually have more choices and more freedom to pick my providers and treatment.

Take stock of your finances and credit and figure out the largest deductible you can manage. This can bring your costs down considerably.

 

[greenone]

DO you belong to a professional association? ASME? They offer insurance too. Maybe go with COBRA while you investiagte your other options. Make sure you get a certificate showing you have had continuous coverage-very difficult to get next insurance wihtout it.

 

[TheTick]

Make sure you get a certificate showing you have had continuous coverage-very difficult to get next insurance wihtout it.

Very important point!

 

[kbro151]

COBRA is nice because you get the same coverage you had while employed. But, it is expensive.

Good reasons to go with COBRA include preexisting conditions, scheduled medical procedures during the elegible period, or expected maternity needs. The main difference you'll find is that when you go on your own you will usually wind up with an individual policy, and COBRA is typically an extension of group benefits.

If you are young and healthy, you can do better than COBRA. If you are old, sickly, , chronically ill, or have scheduled procedures, COBRA may be cheaper.

I went with an HSA when I ran my own business. They are relatively new and require a high deductable. Get a few quotes for different plans (comprehensive, HSA, HMO, etc.), then sit down (by yourself, or with someone you can trust) and go through expected and worst case scenarios for 3-5 years. You can get a good idea what your costs and risks are for each plan.

 

[PEinc]

You may need to have Cobra insurance until a new policy takes effect. This could be anywhere from 1 to 3 months.

 

[kbro151]

Good point, PEinc. I forgot to mention that you should carry your old insurance until you have a new policy in hand and have fully reviewed it. This means, plan on having the cash to pay for multiple policies for at least two months. That way, you can maintain your coverage and get covered under a new policy while you review it.

All policies have a free look provision, usually 30 days but it is regulated by state law, so check with your state dept. of insurance. Until you have the new policy in hand and have paid premiums on it, do not cancel any existing insurance. Review the new policy first to make certain it is exactly what you paid for and expected. Get your questions answered during the free look period, and if you don't like it or it comes back different for a reason you don't like of think is bogus, don't make any claims on it and send it back. If done during the free look period they have to refund your money. If you like it, cancel your existing insurance and have them refund the premium for the period of double coverage.