Will COBRA Go the Way of the Dinosaur?

​There continue to be rumblings that COBRA is no longer needed.  There are a few reasons I think COBRA will remain alive and well, even with Healthcare Reform providing individual medical coverage for all those who want to enroll. 

1. What about COBRA for vision and dental? These benefits aren’t part of most individual medical plans (at least for those over age 18). And forget about purchasing these plans on the individual market unless you want low benefits and high premiums.
2. If you’ve already met part or all of your deductible and out of pocket maximum, why would you want to move to an individual plan to start all over again?  I would at least want to stay on the COBRA plan through the end of the calendar year.
3. The older you are, the more attractive your COBRA rates may be versus individual plan rates.  This is especially true for those who enjoy composite group rates (one rate for all employees, regardless of age).
4. Many state’s individual plans have skinny networks of providers as well as smaller drug formularies.  Staying on COBRA can provide access to more providers and more prescription coverage.
5. Many group plans still offer better coverage than is available in the individual medical market.

​So don’t start planning for the demise of COBRA just yet….

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​While some say COBRA is no longer needed, here are 5 reasons it's not going away soon.

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