Is it silly NOT to take COBRA for insurance?

I left my job and my new one won't give me benefits until August. My Cobra payment would be $1200.00 monthly so I was looking into cheaper ones until mine can kick in then. Anyone know any pro/cons for doing this?

Re: Is it silly NOT to take COBRA for insurance?

I have heard that you can wait to pick up the Cobra.
For example- let's say you don't take it - and then 2 weeks from now something God forbid happens where you need medical attention- you can pick it up right then and there.
I would do that- since it's so pricey.
I would just wait until my new job's insurance kicked in.
If you need it in the meantime you can pick it up at that time.

I would double check this- since I heard this from someone at my job last week- but I'm not 100% sure if it's true....

Re: Is it silly NOT to take COBRA for insurance?

i would definately take out the COBRA. insurance is so important! is your spouse on your insurance plan? or does he have his own through his job? if he has his own, take him off yours and your payment will be cheaper. it seems like it will only be for a few months.

PROS: you never know what could happen from now until august. what happens if you are in the hospital? your hospital bill could be very expensive

CONS: it's expensive! also, if you have or develop a pre-exisitng condition from now until august, the new company may not cover that condition. usually you cannot have a lapse in medical coverage for more than 62 days.

i went through this with my DH, so believe me, i know a lot about this! my DH also does have a pre-exisiting condition.

Re: Is it silly NOT to take COBRA for insurance?

Re: Is it silly NOT to take COBRA for insurance?

In addition to the above, if you lapse health insurance for any period, the next insurance company can exclude pre-existing conditions, some of which you may not even yet know about. As long as you have continuous coverage, that can't happen.

Re: Is it silly NOT to take COBRA for insurance?

Well, this is my story.

I said, No thank you to the Cobra Insurance to my Company that was relocating to FL. Insurance would run out on May31st and my New Job's Insurance would Kick in on July 1st.

So, I only had 30 days....What could go Wrong?

Well got up on June 1st to go Bike Riding with a friend. I came down a Hill and hit a Speed Bump and my tire fell off of my Bike. I had to be taken away in a Ambulance, Stiches on my face,
Sprain both my wrists, Bruised my rib cage, Spained my neck, and knocked my Two front teeth out. 6months of physical therapy.

Well, I honestly lucked out in two ways...1st: I didn't break my neck.
2nd: that since it was a Sunday.
I was able to contact my Old Employer and asked them to keep me on the Cobra and I would mail them a check :

The cost of all of the was almost $20,000.00

I will never ever be with out Health Insurance again.

The Medical bills at that time would have killed me.

Message edited 5/4/2008 10:33:15 PM.

Re: Is it silly NOT to take COBRA for insurance?

Message edited 5/4/2008 10:55:33 PM.

Re: Is it silly NOT to take COBRA for insurance?

You could also look into a short term individual medical plan which can be cheaper than COBRA (but, might not offer the same level of benefits). It will cover a family but - beware of the fine print (especially with pre-existing conditions).

If you do lapse and then pick up under a new employer - group plans usually do cover pre-existing conditions because you are not subject to underwriting in a group policy (only individual medical plans are).

Re: Is it silly NOT to take COBRA for insurance?

I carry the insurance for the whole family (DH and two young kids). I wouldn't go without insurance just something that was much cheaper. Maybe DH can get something cheaper since he is self employed

Re: Is it silly NOT to take COBRA for insurance?

Re: Is it silly NOT to take COBRA for insurance?

I never did it- but it was back when I was young...

Re: Is it silly NOT to take COBRA for insurance?

You have 60 days from when you receive the COBRA paperwork to make the election and then an additional 45 days to make the first payment.

So you can wait until close to the 60th day to elect and then close to 45 days later to make the payment.

By law, your employer will have to reinstate your coverage if you adhere to the COBRA timelines.

HOWEVER, hopefully by then your new job will start and you can elect medical coverage with that employer. That way your COBRA option stays open, but you may never have to make a payment.

But also remember that for pre-existing condition exclusions not to apply, you cannot have more than a 63 day gap in coverage. However, if your new employer has no pre-ex clause in their medical contract, then this is a moot point.

I would not go without insurance; but hopefully the timeframes above will work out in your favor.

Re: Is it silly NOT to take COBRA for insurance?

You have 90 days to take cobra. I did a cost analysis. it was dcheeper to pay out of pocket for DH to go to doctor than to take the cobra for the three months he would have to wait for new insurance. I figured that if "something came up" we would have been able to retro it. I also would not have elected the other benefits such as dental, vision, etc.

Re: Is it silly NOT to take COBRA for insurance?

When I was in between jobs and insurance I just bought major medical insurance just in case. It wasnt that much money.

Re: Is it silly NOT to take COBRA for insurance?