COBRA Hypocrite?

    I feel like a terrible hypocrite, but it's like my friend said, "Funny how real life gets in the way of morals."
    I just did a long post about how it's foolish to go without health coverage, but now I'm sitting wondering if I should pay for my COBRA benefits.
   I thought that I would simply have to pay for the benefits, one month at a time, until my coverage at my new job kicked in. That won't be until the end of August. I even decided I'd use my savings account if need be to make sure my coverage didn't laspse.
    I just got my invoice and discovered that I have to pay three months together -- a little more than $800 -- by July 21. I also have to pay for May and June even though I didn't incur any medical expenses (unless something happens, God forbid in the next few days) and don't have any claims.

    Now I'm not sure if I should do that.

    I thought about simply saving the money I would have spent on COBRA to use it in the event I need to see a doctor. If it's minor, it should just about cover it. But if something terrible happens, and I need to go to the ER for something big, it will barely cover it. On the other hand, if I'm fine and my budget is okay, I could use the money I saved to pay down my debt. It's a gamble, but I'm wondering if it could pay off.
    I could reinstate my health coverage on my auto policy, which would cost $50 to $80 a month (if that much). I think that will only cover me in a car accident. But, that's also where I'm most likely to have a calamity.
    My guy said to keep the money. I think I agree, but I am so adamant and preachy about people having insurance...

    Why are people so afraid to gamble with their money, but find it much easier to gamble with their lives?

   Okay, I need some advice. What would y'all do?

DH

Comments

[Virginia Slim]

I think I would probably NOT pay the COBRA folks, and just take the risk. I mean, you seem to have had a clean bill of health lately, so you should be good to go. That's a lot of money to be shelling out for just a month. Insurance is just that way. Think how many people you know who pay car insurance and have never had an accident a day in their life!

[D]

I have to say I would go without the Cobra. I know it is terrible, but here is some reasoning:

If you need to go to the doctor..he/she will ask "do you have insurance". Always. If you say know your bill will be less automatically and they will also provide you with samples (prescriptions) if you need them.

Hospitals (emergency rooms etc) do the same thing.

This is why costs are so high for the insured patient. We are covering the uninsured.

Just don't spend the cash. Pretend like you paid your COBRA, put the money in an online high interest account and leave it there. Atleast until your new insurance kicks in. Then use it and the interest to pay off some debt.

God Speed.

[Sara]

Hi, I'm a big fan of your blog, I actually posted during the *first* round of insurance discussion. I decided to suck it up and pay my insurance fee for one reason alone: my family. I'm a single gal with no dependents and no savings to speak of. If I do get into a severe accident, my parents are going to be stuck with the medical bills, at least as long as I'm a student. It seems irresponsible for me to save the $300 a term and put them at significant financial risk rather than pay the premium and hope that my dinky insurance policy will help them out at least a little. I also worry about the perpetual female question: what if I get pregnant? There's no way I'd be able to pick up insurance after the fact to help cover prenatal costs. Again, I'd be begging relatives for money (considering my SO's a student too!). It's worth it to me, despite the significant debt I'm in, to carry health insurance. It seems like the least I can do. So I'd keep the insurance, despite the high premium, just for peace of mind.

[Paula]

When I left my last job for my current one, I opted not to do COBRA or get insurance (although I could have). I've had doctor's appointment in the last 6 months since I started my new job (due to a lovely ear infection). And I got a discount on the office visit because I paid cash plus I got samples for the antibiotics that were prescribed. My office visit was only $80 and I don't anticipate being to the doctor again any time soon.

[Les]

I'm not the best person to comment on this subject, as in Canuckia, we are lucky to have health insurance paid for us - to an extent - not dental, which more than sucks, but I can get away with an ER visit or hospitalization and it's covered without any personal loss to me. BUT - not being a "coverage" person, when I almalgamated some bills a while back, I became a little ticked at the agent when he checked ALL the coverage boxes on my form without my permission, and very adamantly made him remove the insurance, only to discover after I'd been laid off that he had left on the "no-fault job loss" coverage, and I (luckily) hadn't realized it. Saved my ass he did, didn't he? Now I only have to scramble to cover payments on one card, and thankfully, so far so good, I've managed the payments. I would have been in really big trouble otherwise.

So - I think, if it's possible at all to get the insurance, that you should. There are just too many "what-ifs" out there.

[mapgirl]

Well, personally, it depends on your situation. I have take then risk and gone without coverage before. However, if you have a pre-existing condition, having the continuous coverage of COBRA will mean your new insurer cannot decline you for coverage of that condition (similar to the pregnancy example by Sara, but a much *worse* scenario is possible say if you are in therapy, need additional surgery or physical therapy, etc.)

Shopping around for cheaper insurance is a good idea. An HMO can usually cover people and there are some online places that wil cover the gap for less than $800. But I wouldn't go without coverage if you can get some somewhere, I'd do it.

[Single Ma]

Dang, $800 is a hard pill to swallow!!

*sigh* If it were me, I'd struggle with the decision too. After considering my daughter and the health related issues I've battled in the past, I would pay it.

A few months ago, I needed an MRI due to sudden but chronic pain in my knees and it cost $5,000 for the test alone. With insurance, I walked away with an immediate diagnosis and only paid $20. If you're sick or need any kind of healthcare, the last thing on your mind should be money.

[J]

This is a gamble. Only you will know if you are comfortable without being covered for that period of time. Check into whether or not the state that your living in has any programs for the uninsured. Here in NY I was able to get insurance paid for by the state since I was not covered at a previous job.
The other thing to do is to keep the payment in a high yield savings account in the event of any injuries. If there are no injuries then you still have the cash.

[Kristen]

Hi, I enjoy reading your blog. $800 is alot of money and I didn't realize that paying in advance was a requirement. But either way, I would say to try to make a way to keep your health coverage because you NEVER know what may happen. On a personal note, I don't have that luxury. A few months ago I was diagnosed with Lupus. Up to that point I was fine. I have a job I hate, started grad school in the hopes of a career change. Now finding another job is a hassle. Its not so easy at least as my health care is concerned. When and if I change jobs I'll definitely have to maintain COBRA since I have a pre-existing condition. Either way life's a gamble. But I don't think you should want to gamble with your health if you can help it.