How Does COBRA Insurance Work?
Cobra health insurance, the Consolidated Omnibus Budget Reconciliation Act of 1985, was initiated to provide emergency coverage for employees who receive health insurance through their employer, andfor one reason or another, lose their job (for example, have been laid off) and find themselves without any health coverage. COBRA allows these employees to continue their group insurance coverage if they choose to, even after leaving their position.
How Do You Apply For Cobra Coverage?
After you have been terminated, your employer should provide you with details about how you can obtain cobra health insurance coverage.
Any Specific COBRA Rules?
First, COBRA coverage also applies to the employee’s family. Besides, an employee can either choose to continue with COBRA or choose not to from the moment he has lost his job-he cannot use this coverage intermittently (i.e., start COBRA three months after losing his job-in this case, he will pay retroactively for those three months).
How Long Can I Carry COBRA coverage After My Job Loss?
COBRA coverage can last only a limited amount of time, typically about 18 months. This should give enough time to obtain a different source of cobra health insurance. Hopefully, by then, the recession will be over as well, and the number of employed people would be on the rise. Get more facts about cobra health insurance on https://www.wafeast.org/7-facts-about-cobra-health-insurance-you-should-know/.
What are the Advantages of Cobra?
The advantage of COBRA is that it prevents an ex-employee from obtaining new health insurance-atleast for a while. The problem is that getting such cobra health insurance And the Disadvantages?Note that although employees are eligible to continue their previous health, dental and vision coverage,the employer no longer needs to sponsor this depending on the employer. This effectively means that the ex-employee pays the full cost of his health coverage, which will be much greater than it used to be.can prevent one from getting treatment for pre-existing conditions. For example, a pregnant woman who is laid off and loses her insurance will have difficulty obtaining new insurance. Thanks to COBRA, however, this is nolonger an issue, as she can continue her existing coverage.
And the Disadvantages?
Note that although employees are eligible to continue their previous health, dental and vision coverage,the employer no longer needs to sponsor this depending on the employer. This effectively means that the ex-employee pays the full cost of his health coverage, which will be much greater than it used to be.
COBRA Health Insurance and the Stimulus Plan
Thanks to the economic stimulus package (which started on February 17, 2009), certain people who lost their jobs are eligible to receive partial payment for their cobra health insurance premium. We will discuss the eligibility criteria in the next article in this series.
Individuals can learn all the most accurate and up-to-date information and resources about COBRA insurance continuation of health coverage and medical insurance benefits. Depending on your age and health, you might be able to get a less-expensive individual private health insurance policy. Opting forless coverage can save some money, but many people still can’t handle the cost, so they go without health insurance. Depending on where you live, the state offers a program for kids under age 18 who have no cobra health insurance. Check with your local health department to see what is available.