A COBRA That's Good for Your Health

You don't have a lot of time to think about the alternatives because you must elect COBRA within 60 days of being notified of the "qualifying event" -- of receiving your termination notice, for example.

That's why it's important to understand both how COBRA coverage works and your alternatives. The best place to start is , a Web site developed by eHealthInsurance.com, the nation's unique source for complete online information and quotes on individual health policies, no matter where you live.

Cobra vs. private insurance

A recently released study by the Henry J. Kaiser Family Foundation says that in 2008, the average annual premiums for employer-sponsored health insurance are $4,704 for single coverage and $12,680 for family coverage, which works out to an average of about $400 a month for an individual, and $1,078 for a family.

At you can search for individual or family policies offered in your state. You might be surprised that by increasing the deductible or co-payments, you can find affordable private policies. Yes, you might have to take responsibility for more of your costs through a higher deductible, but you'll be covered for major illnesses and won't risk losing your home over medical debt.

That's better than being among the 30% of those eligible who decided to go completely without health insurance because they figured it was too expensive.

When you MUST consider COBRA

If you have a pre-existing condition, you're pretty well restricted to using this extended coverage, and hoping you'll find another job with health insurance before the time lapses. (That's the tragedy of tying health insurance to jobs in America. With our transitory job market, and recessions, people who have paid premiums for their health insurance can be left uncovered because of job loss.)