COBRA - Consolidated Omnibus Budget Reconciliation Act

COBRA will typically be offered to you upon leaving a job where you had Group Health Insurance , and continuing health insurance was not provided to you.

If Cobra applies, you will be offered the same coverage that you have had for a period of 18 months. You will have to pay a premium, and it will typically be much higher than what you were paying at your job. The reason for this is that you are now paying the full amount vs. having your employer contribute.

COBRA is a good option to have if you currently have medical conditions that require treatment, or if you have severe or multiple pre-existing conditions. If you are fairly healthy, and are able to attain an Individual Policy  , defiantly do so as the cost will be much lower. You also do not want to stay on COBRA too long if you don't have to because you could have a serious accident, or illness that will now force you into exhausting your COBRA benefits, and having to use HIPAA .

Before leaving you job, you can check with your human resources department about the cost of COBRA. It will typically be more than double the cost of an Individual Policy . If you do need to stay on COBRA for the duration, be sure to start looking for something to replace it well before it ends. Give yourself a month or two to look around, and to have time to go thru underwriting. If you are not able to find a carrier who will insure you, start looking for one who will take you under the HIPAA program. You will have one chance to use this option.