In today’s economy, there is very small job security. Unfortunately, one of the secondary effects of losing your job is that you lose your health coverage as well. Thankfully there are programs in place that can extend your health coverage for up to 18 months following a termination, career change, or even retirement.

COBRA indemnity was enacted into a law to protect you from losing your healthcare in scenarios such as getting fired or laid off. Officially known as the Consolidation Omnibus Budget Resolution Act, it is designed to provide medical indemnity coverage for employees and their families even after they’ve severed ties with their employer. People must also know that COBRA is a law, not an indemnity package.

Before COBRA medical indemnity was enacted to cover medical needs of terminated employees, the group health plans of terminated workers and those who changed employers were immediately cancelled. With the advent of COBRA indemnity, employees who have been fired or laid off will receive 18 months of medical coverage of the same health indemnity policies their employers gave them.

But, the benefits of COBRA medical indemnity are available only as a group plot and not as individual health coverage. You need to be a part of a health plot group of 20 or more employees for you to be eligible to apply for COBRA medical indemnity policies.

The Price of COBRA Health Indemnity

The price of a COBRA policy is also significantly higher than the total price of the medical indemnity policy bought by your employer. The total cost of a COBRA indemnity package is the total amount of your group healthcare plot plus 2% administrative fees. COBRA is more expensive than other group plans, but also provides peace of mind knowing that your family or individual health coverage plot is extended to cover you or your family in case of emergencies or severe health issues.

What makes COBRA unique from other forms of medical and health indemnity plans is that COBRA will continue to cover any pre-existing medical conditions that were approved and covered by your original health plot. If you happen to be afflicted with a medical condition, COBRA will cover these conditions. Other health indemnity providers may not cover pre-existing conditions, potentially leaving major conditions to go untreated.

Why COBRA is a Wise Choice

There are many reasons why applying for COBRA is a wise choice. Apart from the fact that you are medically insured and covered for a period of 18 months after leaving your job, you can maintain all the benefits you once received from the same health plot insurer you had before you left your job. As mentioned before, COBRA covers any pre-existing or recent medical problems, which may not be the case with other health indemnity companies.

If you lose your job and rely heavily on your health indemnity plot for sharing the cost of expensive medications, applying for a COBRA policy is an brilliant choice. COBRA covers the cost of prescription drugs, as well as other services such as maternity benefits and accident indemnity.

Since many individuals cannot afford the COBRA option offered by their employers, there are COBRA alternatives that are designed for people who are in excellent health and with no pre-existing medical condition and do not need to take expensive medication. These alternatives come in the form of individual and family health plans.

While COBRA provides an opportunity for individuals to retain health care indemnity, individual health coverage plans are much more evenhanded as it pertains to cost.

The best thing you can do is to research your health indemnity coverage options before you choose on the best health plot. It is vital to make a wise choice since this health plot may be with you for a while!

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