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Cobra
is essentially continuation of a prior group
coverage that typically lasts 18 months (can be up
to 36 months). You are able to elect Cobra
within a 62 day window from your last date of
group coverage and continue monthly. Most
people do not realize that they have options to
Cobra that can significantly reduce their cost as
Cobra is typically very expensive in comparison.
Below are some general points on Cobra coverage
followed by some alternatives to reduce cost.
 Cobra
rates are usually 10% higher than what the
company was paying for you.
Cobra
is paid monthly and can be cancelled monthly
as well.
If
you wait till the end of your 62 day window,
you will still need to back-pay first two
months of Cobra to bring it current.
Dependent
costs are typically much higher on a Cobra
(Group) plan compared to the employee cost.
Cobra can be split up. For example, you
can get your own individual plan and keep
someone who is unable to qualify (based on
health) on Cobra. Verify with your Cobra
administrator/carrier before you try this.
If
you are unable to qualify for
Individual/Family coverage and you exhaust
Cobra, then there is typically a HIPAA option
available to you. By law, each carrier
must offer their two most popular Individual
plans on a Guaranteed Issue basis to HIPAA
eligible individuals. The rates are
higher than qualifying based on health but it
does provide a back-up option in case you are
unable to get your own Individual coverage.
There is also a 62 day window from the last
date of Cobra coverage to initiate HIPAA.
Please
check
with us for HIPAA information and/or rates.
Currently, Blue Cross' Share 1500 and Share
2500 HIPAA rates have been the most
competitive.
Instant Individual/Family quote
here.
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