Page 114 - Group Insurance and Retirement Benefit IC 83 E- Book

For single people, you can expect to pay upwards of $200 a month. For disabled

beneficiaries who receive an additional 11 months of coverage after the initial 18 months,
the premium for those extra months may be increased to 150% of the plan's total cost of

coverage.
It's not surprising, then, that a 1996 survey conducted by Charles D. Spencer &

Associates, covering 1.42 million workers at about 200 firms, concluded that just 28% of
eligible people opted for COBRA.

Still, for someone who‘s only other option is getting an individual health policy or who

could wind up in a state's "high-risk pool" -- generally considered insurance of the last
resort for people who can't get coverage in the open market -- COBRA is generally less

expensive.

And keep in mind that you can‘t COBRA Insurance a tax deduction on your medical and
dental expenses that exceed 7.5% of your adjusted gross income.

When you're on COBRA, no longer will your employer be picking up a big chunk of the

monthly premiums. You'll be responsible for paying the full amount, plus an
administrative fee of up to 2%. You'll have to weigh your ability -- and desire -- to pay

the extra expenses against you and your family's need for health coverage and the

financial dangers of going without it.

The fact is, though, that if you have children, you should have health insurance to help
pay for all those routine check-ups and immunizations they need, plus the unexpected

emergencies. One broken wrist could set you back thousands of dollars.

And how are you feeling? If you have ongoing medical problems or need prescriptions

frequently, you probably should opt for COBRA not only because the insurance coverage
will help defray your out-of-pocket costs, but also because it will ensure that you don't

inadvertently lock yourself out of the health-insurance market.

People who have "pre-existing conditions" -- meaning medical problems that exist before

you buy a policy -- find it much more difficult to buy individual health coverage because