COBRA is a federal law that forces most employers with over 20 employees to keep former employees on their group health insurance plan for a period of time. The official Department of Labor information and definitions can be found on the DOL website. Since Cobra is a federal law, Ohio COBRA health insurance and Connecticut COBRA health insurance will be affected by the same laws.
COBRA health insurance is Expensive
Private or individual health plans usually cost less
In Connecticut Group health insurance is usually more expensive than private health insurance. That is probably true in other states, but I’m a Connecticut insurance agent and know what happens when I assume.
Many of our clients are looking insurance for in between jobs. Instead of COBRA, we often recommend short-term health insurance to our clients. This is almost always the lowest cost option. However, this option also offers less protection because these policies cannot be renewed, don’t cover pre-existing conditions, and doesn’t offer preventive care. But money is always a factor, so, this is an option of money is tight.
Private health insurance is usually a better, albeit slightly more expensive, option. This keeps all your options open. You can cancel your plan at any time if you get group health insurance from an new employer.