COBRA Options:
There are many ways to save here. Please call us to review your specific situation.
Individual plans are nearly always less expensive
Take advantage of your 63 day right to review. You have 63 days after being offered COBRA to accept it. You can elect to wait until the end of that 63 day period before declining the COBRA option. During this period you are still covered under your old plan. If a major medical expense comes up during this period you can elect to take your COBRA plan and your medical expenses will be covered under your old plan. You can elect to pay your premiums before the end of your 63 day review period and your coverage will be uninterrupted. Keep in mind however than a change in your health during this period may prevent you from qualifying for a less expensive individual plan.
If COBRA and an individual plan are about the same cost take the individual plan. COBRA generally only lasts 18 months so at some time you will have to make a switch. If you are relatively healthy it is better to make a switch on your own terms rather than waiting and letting a change in your health prevent you from obtaining inexpensive individual coverage.
Select the highest deducible you can.
Look at your new individual plan as insurance against a large unexpected hospital bill rather than something to cover 100% of everything. Individual plans are MUCH less expensive if you take on a little of the risk yourself by choosing a deductible of $1500-$2500 or even higher. Most people are not aware of the cost of health coverage until they leave their benefit rich employer sponsored group plan. Don't look for your individual plan to match your old company plan benefits and select the highest deductible you could afford to pay if you had a large unexpected medical bill.
We recommend plans that are a hybrid between benefit rich group plans and a low cost high deductible plan. These hybrid plans offer small co-pays for routine items such as office visits, prescriptions and emergency room visits, but have a higher deductible that usually only come into play for expenses such as hospital stays or outpatient surgery.
Have a group plan with seniors over 65?
Put them on their own individual Medicare supplement plan; you'll save a bundle. Ask about the new Medicare advantage plans, which are quickly becoming popular.
Have a company with one or two employees in different states?
In this situation it's tough to get a plan that works for everyone. A health plan that works well in Washington may not even offer coverage in the state of Texas where your two other employees reside. Leave your group plan in place as it is for your employees in Washington and get an individual plan for your two people in TX. You can tailor make an inexpensive individual plan for your remote employees without having to change your plan in Washington where the bulk of your employees reside.
If you have pre-existing conditions.
We’re experts in finding insurance for difficult situations; contact us with your specific situation. We can quickly guide you to the plan that will best suit your needs based on your health. Insurance companies will offer a couple options:
They can decline you coverage.
A rate up. Rates may be higher than standard rates depending on your condition.
An exclusion: You may find that it’s better for you to have a condition excluded from coverage rather than not having coverage at all. Many companies we work with will remove an exclusion after a period of time.
