COBRA insurance coverage is definitely the right choice for some people. However, others can find affordable health insurance policies that meet their needs at a much more competitive price than COBRA. How do you know which choice is right for you?

The only way to be certain is to learn about the pros and cons of each option, and apply them to your own personal situation to see if the benefits of COBRA insurance coverage are worth the price. To help you, here is a list of the advantages and disadvantages of choosing COBRA insurance coverage instead of private insurance coverage.

COBRA Pros and Cons

COBRA has the following advantages over private insurance:

• No need to apply for private insurance: Some individuals may have a hard time finding a private insurance plan to accept them at a reasonable premium. This is especially true if you have a pre-existing condition. With COBRA, you are guaranteed to be able to keep the coverage you had at your old job.
• Keep your doctor: With COBRA health insurance, you can stay with the same doctor, without having to worry about whether or not they are on a new plan.
• Subsidies reduce cost: The ARRA subsidies make the cost of COBRA benefits more competitive, at least for the 9 months they are available.
• Less stress: You can focus on finding a new job without worrying about health coverage for yourself or your dependents.

However, COBRA also has some disadvantages:

• Cost: COBRA generally costs more than many private insurance plans, eating up unemployment payments and using money that is needed for other bills and expenses.  Even with subsidies, many Americans can find private insurance cheaper, making it easier to balance your budget each month.
• Temporary coverage: COBRA benefits are only temporary, and the subsidies run out after 9 months, increasing the cost of coverage dramatically. Still, the U.S. Congressional Budget Office estimates that 7 million people could be provided for through this coverage.

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