What is COBRA Health Insurance?
All About COBRA Health Insurance
COBRA is an abbreviation for The Consolidated Omnibus Budget Reconciliation Act. This act was passed by congress in 1986 which allows the continuation of group health coverage benefits to employees and their families which might have been terminated otherwise due to loss of job, reduced work hours, transition between jobs or death and other life events.
However if they opt for COBRA they can extend their group health coverage for a time period of 18-36 months. COBRA provides continuation of group health coverage benefits for employees and their families, the employees are required pay the entire premium for the coverage themselves however this is usually less than individual health plan.
Why COBRA is a Good Choice
Since COBRA offers group health plan benefits at comparatively cheaper rates than individual health plans it might be a good option to go for. If you recently had health problems or you are suffering from health problems, for which you need to pay for costly medicines, it is only possible with a group health plan. If the new employer does not provide health plan or an individual is not eligible for private insurance, in these cases also, an individual can opt for COBRA until he gets an alternative and secures his future.
Who is Eligible for COBRA?
To be eligible for COBRA a company must have at least 20 employees, an employee must be enrolled with company’s health plan and the health plan must be active; i.e., if the health plan is discontinued by the company of employment COBRA automatically discontinues to provide health coverage. An employee who has been covered by group health plan before a situation where he looses the benefits of plan, is eligible. COBRA also covers employee’s spouse and dependent children. In certain cases it is also applicable for retired employees spouse and dependent children. If in case of divorce the spouse of a covered employee may also opt for COBRA coverage.
How to Apply for COBRA Health Insurance
Whenever an employees faces a situation where he looses the benefits of group health plan, he must notify the HR department of his company and ask for COBRA, a notification will be sent to plan administrator .The plan administrator sends an election notice within 14 days by first class mail on receipt of the notification for loss of group health coverage. The election notice describes the plan benefits and charges. Now the employee or beneficiary has to individually accept or decline the offer, within 60 days of loss of group health plan.
COBRA continuation coverage laws are administered by agencies like Departments of Labor and Treasury, Department of Health and Human Services which play important role in control and jurisdiction of COBRA plans.
I took advantage of COBRA when I was laid-off from work.
It was very helpful at the time as I don’t think I would have been able to afford health coverage collecting unemployment
I’ve been hearing Cobra Health Insurance from some of my friends so I decided to try. I think this one’s just the right thing I need. It’s really an affordable health insurance that can take good care of me.