COBRA Isn’t for Everyone

These days Wall Street’s employment woes seem to equal law firms’ losses. As business dries up in certain practice areas, firm managers are facing tough decisions. If you’ve already lost your job … or will soon be unemployed … you need to get up to speed on your health insurance options. Chief among them is COBRA, the federal law that lets you continue your employer-sponsored health plan for some 18 months in the event of a layoff. But is it the right option for you? Maybe not, says the Wall Street Journal. If someone covered by your current plan is pregnant, or has a pre-existing condition, or is taking prescription medications, COBRA may be a good option … but an expensive one. Under COBRA you’re responsible for the previously subsidized premium plus a two percent administration fee. If you’re relatively healthy, though, there are cheaper alternatives. If you have a pre-existing condition, choose COBRA for yourself, but look around for a less expensive plan for your spouse and/or child.