You might have just lost your job or just graduated from college, and one of the first things on your mind is how am I am going to afford that $300+ month health insurance payments when I don't have a job?

Most people join COBRA right away and pay, because they don't know what the options are.  However, this might now be the right answer for everyone.  You need to consider what kind of health insurance you really need and then decide if COBRA is right for you.  Look at the following two scenarios:

• If you are 24 years old, rarely go the doctor, and have no major illnesses, you should not get COBRA since you will be throwing your money away.
• If you have a family with children and nobody else in your family can get health insurance at their job, you need to get COBRA insurance from your employer.

The basic rule of thumb is that if you are under 40, have no kids, and have no major illnesses COBRA is a huge waste of money.  What you are really doing is subsidizing all the other people out there that have kids, illnesses, etc.  What you need to get is accidental or catastrophic insurance coverage, which covers you if something happens that costs over $1000.  This short term insurance can run between $30-$40 per month, and usually provides coverage up to 2 million dollars.  So if you break your leg, your covered.  There is no physical exam and you can usually order it right over the internet with a credit card. 

Why a 23 year old would pay over $300/month for health insurance when they can pay just $30/month we don't understand.  There a much better things to spend money on when you are young.

If for some reason you do need to go to the doctor, just cut a deal with the doctor up front and tell them you will pay cash for the visit.  Most doctors will discount you up to 50% for cash payment since they don't have to waste time chasing down insurance companies, HMO's, billings, etc.  By doing these two things you will be able to save a huge amount (about $1,560 over a 6 month period).  Plus in some cases you can deduct the insurance off your taxes saving you even more money.

Remember, don't automatically enroll in your former employer's COBRA plan, you need to make sure you look at all your options and medical needs for the near future before throwing your money away on something you don't really need.  Especially if you have just lost your job or graduated college, you really want to make sure you look at all your financial decisions carefully.