Your money might be better placed into an earmarked savings account (which can be opened at your local bank or credit union) where you could deposit money regularly. This does not mean you shouldn’t go shopping for a new comprehensive health insurance policy. Being proactive with your health care coverage is smart. Keep in mind that you can only submit claims to one company at a time, however, so paying for two policies simultaneously would be a waste of money. If you do lose your employer-provided health insurance, you may be eligible for continued coverage under COBRA, which stands for the Consolidated Omnibus Reconciliation Act, which became law in 1986. COBRA gives you the right to choose to temporarily keep group health insurance benefits that you would otherwise lose after you reduce your working hours, quit your job, or lose your job. COBRA also allows family members to elect to retain health insurance after your job loss or other qualifying event (e.g., widowhood and divorce) that would normally cause them to lose the coverage they have through your employer. COBRA allows an employee to buy health insurance through the employer (by paying the employer’s and employee contribution combined), even though the person no longer works there or no longer works full time. Having an earmarked savings account can help pay COBRA premiums. We would like your feedback on this Personal Finance Frequently Asked Question.

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