Medicaid versus COBRA

Question

I was just let go from a job and am considering getting COBRA. But if I qualify for Medicaid, doesn't it make sense to get Medicaid for the cost savings?

The real question, though, is: Is coverage under Medicaid less comprehensive than the average coverage..say by Blue Cross or whoever? Are there non-monetary reasons that I should do COBRA instead of Medicaid?

Answer 1

You should get both. Cobra would be your primary and Medicaid is secondary. They will cover Cobra's co-payments to save you from having out of pocket expenses.

Also be careful because if you are on Medicaid a doctor can not legally charge you money for service. If you have a share of cost they need to inform you of this before the procedure is done so you can choose weather or not you can afford it.

The doctors will not always know what your insurance covers and they may perform a procedure that is not covered by Medicaid. Its better to always have the staff varify the procedure with your insurance to see if it is a coverd service.

I am not a lawyer but I have worked as a medical biller for several years.

Hope this helps  

Answer 2

Cobra only lasts for a limited amount of time. I think 3 months plus you have to pay a higher premium than your regular insurance. Mediciad covers everything that is medically necessary so I would def get Mediciad if you are eligible.

Answer 3

Only by going through your plan document, provided by your past employer, can you determine whether the coverage is more comprehensive with COBRA vs. Medicaid.

COBRA coverage is available for 18 months.

The question I would ask you is whether you can afford to make the payments under COBRA.  If not, then you would be better off going with Medicaid.

One disadvantage of going through Medicaid is that not all doctors are accepting new Medicaid patients.  So, if you have a chronic illness and you need immediate care, you might have trouble finding a participating provider.

The most important thing is to have continuous health care coverage.  That way, you cannot be denied coverage with a new insurer for a pre-existing condition.