COBRA alternative savings calculation

A: This general comment applies to most people but not everyone. Most U.S. households have total medical expenses less than the $400 amount you stated as the cost of insurance. It seems unlikely that ADD medications would change that unless there are significant additional issues. Of course, there are some situations where the cost of treating pre-existing conditions justifies the cost of COBRA coverage, but this is less than 1% of all eligible applicants. Consider this illustration of a more "typical" COBRA alternative election: An employee is about to leave her employer-provided health plan makes a mail-order purchase of 90 days of prescription drug medicine that would otherwise cost $150 per month. She then enrolls in a short term medical plan for $100 per month instead of $400 COBRA plan. Later she purchases 3 more months of medicine out-of-pocket that are not covered by her short term medical insurance but had no other medical expenses. After six months, she is covered under a new employer plan. After the calculations, she spent $600 on insurance and $150 for medicine for a total cost of $ 750. The cost of COBRA would have been $2400, so she saved a net $1,650. Each person who becomes eligible for COBRA and less expensive COBRA alternatives would be smart to do this financial calculation based on the estimates that best apply to their own situation.