If you are looking to replace employer health insurance, there are important considerations to remember as you shop for new health insurance coverage. Employer health insurance is typically less expensive than any private policy that you can find. Also, if you are considering having a child, most individual policies do not include maternity coverage. You must pay an additional premium charge in order to have that coverage if it is available.

An employee that has health insurance through an employer typically has a portion of the insurance premium paid, making it more affordable. Being part of a large group further reduces the premium. It is not very often that an individual policy will work out to be better than an employer provided policy. However, if you have lost your job for any reason, you are able to continue your employer health insurance coverage through COBRA. By doing this, you assume responsibility for the entire cost of the insurance and often a small additional fee to cover the clerical work required. Although it becomes more expensive, this is usually the wisest thing to do. Even if you intend to obtain other coverage, it is important that you do not lose your current coverage until you have a new policy in place. You may discover that you have a condition that is difficult to obtain coverage for because insurance companies routinely place exclusionary riders on policies for certain conditions. If you discover that you are uninsurable and are referred to the high risk pool, this is a condition under which insurance becomes very expensive and being able to continue with COBRA is good.

Often, you will be able to locate an adequate policy and obtain coverage within a short time of beginning to search. In this case, you do not need to pay for the COBRA coverage at all. You have 62 days to elect COBRA and can try to obtain other coverage within this time frame, but it is vital that you begin looking as soon as you become aware of the need, because it takes time for an insurance company to review your application and let you know whether it will cover you and on what conditions. Should you have a medical emergency, you can get treatment and then pay the insurance premiums for the COBRA coverage, and your medical expenses will be covered by your employer health insurance. You only have to be certain to elect the coverage and pay the outstanding premiums within the allotted time frame.

Replacing employer health insurance is often a frustrating and time consuming process, but if you begin immediately upon discovering the need, you will not be left uninsured.