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Why should I consider paying for COBRA?

Why would anyone pay for COBRA?


Most people do a spit take when they see the cost of COBRA for the first time. 



“You expect me to pay HOW MUCH for this crappy insurance that I had to fight with three times this year? F*ck that noise!”

Fair.


Employer health plans tend to be pretty strong. Strong coverage costs a lot.

You probably just didn’t notice when your employer was paying for part of it.

Now that you’re on your own, you can probably find a Marketplace plan for cheaper.

Definitely check.


☝️ But...


How much progress have you made toward your deductible so far?


If you go on a cheaper plan, your deductible is set back to 0.

Inexpensive plans have higher deductibles.


So if you go to the doctor a lot and you pick that cheap-o plan, you’ll be paying out of pocket for a while.


How much is that deductible on the cheap Marketplace plan again?

How much have you already sunk into your employer plan’s deductible? 


Or, if your employer’s plan’s deductible is low, how much have you avoided paying so far this year?


Don’t just look at the deductible. Look at the copays and coinsurance, too.

All that money you didn’t spend because you had that fancy plan. That money will be coming out of your pocket if you go for a budget plan.


When you factor in the cost of actually going to the doctor on a cheap-o plan, you may find that staying on your COBRA plan is cost-effective after all. 


I got the cheap insurance once. I figured that I’d only need a doctor if I was hit by a bus. 


At my physical, I mentioned that I’d been having this weird feeling in my chest. My doctor listened to my heart ($147) and recommended I see a cardiologist ($650). I got hit by a bus, alright. But it was a metaphorical one. $9,000 over months of appointments. Don’t be like me. Get good insurance.



But all this month, I’ve been sharing tips on my Substack about how employer-sponsored insurance actually works and how to get the most out of it. 




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