A COBRA That's Good for Your Health

Unemployment is rising, and with the economy slowing, it is likely that many more will find themselves without income -- and possibly without health insurance. That's why the government enacted COBRA, or the Consolidated Omnibus Budget Reconciliation Act, in 1986.

Within that huge legal document is health insurance protection for those who lose jobs or who find themselves suddenly without health insurance because of death or divorce. Basically, it provides that the employee can continue on the company health insurance plan -- but only if he or she pays the full cost for that coverage.

As you can well imagine, adding a huge expense for health insurance just when you've become unemployed is not a pleasant thought. But if you, or a family member, have a pre-existing medical condition, it might be the only option for coverage. Weighed against losing your home to medical bills, an expensive COBRA plan may be the least of the bad alternatives. ...