COBRA vs. Individual health plan?

Question

Right now I'm on COBRA from my previous job. It is a little bit expensive ($420/month) and I'm thinking of getting an individual health plan - which I found for like $250/month.

I don't have any health problems but we are planning to get pregnant maybe in couple months. I already looked up an individual plan with maternity plan and there is no waiting period (United Healthcare).

What should I do?

Answer 1

If you are thinking of getting pregnant you're better off staying with your COBRA plan. Can you guarantee when you'll get pregnant? Individual maternity is more of a pre-payment plan. The plan you are speaking about may not have a waiting period but they have reduced benefits. For the first two years your maternity benefits are limited to $2500. When you pay the extra maternity premium, which is $106.40 in my state, for two years you've paid over $2500 so if you don't get pregnant soon you're paying more than the benefit. Pay the premium for an additional two years will get you $5000 in benefits.

Many people will get an HSA qualified plan so they can save money for the delivery pre-tax while other people will just open up a savings account. Also, most doctors and hospitals will let you pre-pay for the delivery and will give you a reduced price. You do need a policy because complications of pregnancy, such as a C-section, are covered even if you don't have maternity coverage.

You should talk with a local agent that works with all the major companies in your area. The agent can explain the benefits to make sure you have the best policy. There is no extra charge using an agent and you'll save a lot of time.

Answer 2

COBRA only lasts for a short period of time, it is not meant to be  a long term solution to health insurance, but a way to keep coverage in place while you are between jobs.  Once the COBRA period is over, then you will have no insurance.  As long as the United Healthcare policy is comparable to what you have now (or better), then I suggest you seriously consider this change.

Answer 3

Depends on where you live, but the UHC maternity is likely not as good as the COBRA.

Talk with a broker to help you out.

http://www.InsurancePickle.com