COBRA is an acronym for Consolidated Omnibus Budget Reconciliation Act. But, the acronym is exclusively used to describe the health benefit provisions of a 1986 law that provides for a type of insurance that people can obtain if they’ve lost their primary means of health care coverage.

Some common users of COBRA are people that have recently lost a job, recently retired or are disabled. COBRA can be used to cover your spouse and children as well, if necessary.

Generally speaking, COBRA is more expensive than health insurance you have from an employer. The reason for this is that most employers pay a percentage of health care costs for their employees. Unfortunately, with COBRA you have to pay all of the costs yourself. Still, it is less expensive than getting insurance on your own usually because COBRA uses a special group rate for the health insurance they offer you.

The length you qualify for COBRA coverage varies depending on your circumstances. For example, if your major medical coverage ends because your employment ends (other than for gross misconduct), or because your hours are reduced, you and your qualified dependents are allowed to keep coverage under the employer’s health insurance for up to 18 months. But, people with certain disabilities qualify for 29 months. Finally, dependants that lose health insurance coverage qualify for up to 36 months of COBRA coverage.

The specific health benefits that a COBRA insurance plan usually includes are doctor care, hospital care – both inpatient and outpatient but not usually extended-stay care, surgery, prescription drugs, and even medical and dental needs. Life insurance is never included in any COBRA insurance packages. Furthermore, despite its eponymous name, COBRA insurance is not offered by just one provider and so it varies from provider to provider. The COBRA law stipulates certain basic kinds of coverage that its users must receive. Some providers might offer their users more than the minimum.

For more information about COBRA, visit www.dol.gov/ebsa/faqs/faq_consumer_cobra.html. You can also find a detailed brochure, An Employee’s Guide to Health Benefits Under COBRA, on the Web at: www.dol.gov/ebsa/pdf/cobraemployee.pdf.

In an effort to deter people from not buying insurance until they get sick, insurance companies have imposed “pre-existing condition” clauses into policies. Basically this means if you have a medical problem that you received treatment for or treatment was recommended for and it exists at the time you enroll in or purchase health insurance, then the insurance company will deny all claims pertaining to the medical problem for a certain amount of time.

If your coverage is job-based insurance then your pre-existing condition time period maxes out at 12 months and is only relevant to conditions that you sought treatment for in the 6 months prior to your enrollment in the insurance program. However, if you’ve had continuous coverage with another plan you can sometimes subtract from the waiting period. Continuous coverage is defined as coverage with less than 63 days of a gap in coverages.

Each state has its own rules for pre-existing condition exclusion periods. Generally they vary greatly, too. Check with consumer guides in your state to find out the specific information regarding pre-existing condition in job-based policies as well as individual policies.

Coinsurance is the term used when an insurance company and the person that is being insured actually share the risk of insuring a person or family. Health insurance companies basically require you to pay a percentage when you file for a medical claim. This amount is separate from any co-payments or deductibles you pay also.

Common types of coinsurance are 80/20, 70/30, 90/10 and flat rates falling between $5 and $20 per doctor visit. With the split percentages your plan will pay for the larger number, i.e. 80%, of your medical expenses and you pay for the remainder. Oftentimes coinsurance also has a cap ranging from $2,000 to $3,000. This is to help prevent financial distress due to serious medical costs.

Coinsurance has some benefits such as lowering the cost of insurance for the insured. And it also helps ensure that an insurance company can pay all of its claims. But, coinsurance doesn’t take effect until after a deductible has been paid, which can lead to large amounts of money spent on your insurance throughout the year.

No matter what type of insurance you choose it’s always a good idea to understand the terms and conditions fully and to make sure that it is the best option available to you. Coinsurance in particular can be very confusing so ask as many questions as necessary or you could end up with a large bill.

There are many types of insurance you will need throughout your life – auto, health, life and home just to name a few. No matter what type of insurance you are looking for you should thoroughly shop around because there is a lot of competition for your business. These days a lot of companies are competing both offline and online for your business. Here are a few tips for finding the best deal for your insurance needs.

The best place to start shopping is online. There are so many insurance companies willing to offer you a policy that it is almost mind-boggling. You can use search engines to find the quotes or even a price comparison website that allows you to see what premiums different insurance companies are willing to offer you at different prices. Searching online also allows you to do the due diligence to find out more information about particular companies, their policies and how they handle claims.

Secondly, don’t rush the decision process. Insurance policies are pretty complicated documents and you want to be sure that you understand your policy completely and that you have provided the correct information for quotes. If you don’t understand a particular piece of your policy it may come back to bite you in the future when you make a claim. And if you provide information that isn’t entirely correct then your quote can change when you go to finalize your policy.

Finally, it is almost always cheaper to pay the policy in full as it is due rather than paying quarterly or monthly. Usually the insurer will make you pay fees or interest rates if you choose to space out the policy payment over time rather than paying it all at once.

Following these suggestions can end up saving you a substantial amount of money each year for insurance costs. And since insurance often seems like an unneeded expense, until something goes wrong that is, the cheaper you can make it, the better.

Insurance is something people get for protection against the financial impact an accident or tragedy can have. Since there are various parts of your life where these accidents can occur, there are different insurances for each circumstance. Here is a little information about the main types of insurance.

First up is health insurance. While many people have health insurance through their employee, not everyone does. And even if you don’t have it through work you should try to get some sort of policy. When you are considering health insurance policies you should consider both the deductible (what you’ll pay out-of-pocket for health care) as well as what will be covered by your policy. The most common types of health insurance are PPOs (preferred provider options), which allow you to refer yourself to any provider in your PPO’s list, and HMOs (health maintenance organizations), which tend to be least expensive and most restrictive, usually assigning you a primary care physician that decides what medical treatment is necessary for you.

Auto insurance is another biggie. Most states require auto insurance, making it illegal to drive a car without it. Auto insurance protects you against any liability you have to others in case of a car accident as well as any damages done to you, your passengers or your vehicle. Generally, how much of this insurance you need depends on your assets. If you have an older car, rent your house or apartment and don’t make much annually then you don’t really need a lot of coverage. If you have a newer, expensive car that would be hard to replace then you might want to consider having more auto insurance in case of an accident.

Another type of insurance is life insurance. Life insurance policies generally cover the replacement of the policyholder’s income or work, estate taxes, and burial costs. To replace what a family member is contributing with life insurance you need to purchase around 12 times the amount of money they contribute annually.

A final type of important insurance is homeowner’s insurance. This protects you in case of damages to your home and property because of natural disasters such as fire, flood or hurricanes. When looking for a homeowner’s policy consider the different amounts of coverage offered other than on the house, the deductibles and percent of loss covered. Also keep in mind that basic homeowner’s insurance doesn’t cover the contents of your home so you’ll need to add it in or purchase it separately. If you rent or own a condo you only need insurance that covers the contents of your home and possibly liability insurance.

While these are only a few types of insurance available, they are the main ones and the ones that everyone should have at least a little coverage for. When purchasing any type of insurance be sure to do your research and shop around for what fits your needs best.

If you don’t have employer-sponsored health insurance, you may be looking to obtain coverage on your own. To get good coverage at an affordable price, shop around. Because premiums vary widely, you’ll probably save money if you get quotes from several companies. Evaluate each plan’s coverage and features, taking into account exclusions, limitations, and the freedom to choose health-care providers, among other things. Also find out how much you’ll end up paying out of pocket in the form of co-payments, coinsurance, and deductibles, because even relatively small amounts of money can really add up if you make frequent visits to your doctor.

Cut the cost of prescription drugs
Prescription costs can eat up a large portion of your budget if you take prescription drugs regularly. Fortunately, it’s not hard to find ways to save money. For example, try ordering your prescriptions through the mail, using a traditional or online pharmacy. If you belong to a prescription drug plan (e.g. through your health insurance), you may be able to get a three-month supply of your prescription drug through the mail for the same price you would pay for a one-month supply at your neighborhood pharmacy. You can also ask your pharmacist or doctor to recommend a less-expensive generic drug whenever possible.

Check your medical bills
Medical bills are often confusing to read. However, taking a few minutes to go over the charges may save you money in the long run. Check to make sure that the bill accurately reflects the procedures you have undergone and takes into account any applicable insurance coverage you may have. Some errors, such as wrong computer codes, are common, and you may be billed for health care you never received. Contact the appropriate billing office if you think you’ve found a mistake. If you’ve received an explanation of benefits from your insurance company that you believe is wrong, ask the company to review your claim.