COBRA Health Insurance - What is it?
What
is Cobra? And how do I figure this out? There is a huge challenge faced
by many people today; you've just been leg go by your employer.
Basically, you have no income, and no health insurance benefits.
Currently, the last thing you want to do is send money to your
ex-employer for health insurance benefits. However, that is most likely
what you'll need to do. Are you covered? You are likely eligible to be
covered by your employer's COBRA health insurance plan. You must pay the
premiums yourself; you will be eligible to remain covered, without any
lapse in benefits, by your previous employers plan.
What is COBRA and how do I get it? Prior to 1986, loss of employment
would also mean loss of you and your families health insurance coverage
(if they were also covered by your employer). In 1986, the Consolidated
Omnibus Budget Reconciliation Act (COBRA) was passed. COBRA health
insurance provides you the right to extend your employer-provided health
insurance coverage. You continue to receive the same benefits, but at
your own expense.
In all instances COBRA health insurance requires your previous employer
to offer their health insurance coverage to covered employees, and their
covered dependents. Slough, there are certain qualifying conditions,
this will most likely be a good option if you are not a healthy
individual. These conditions include the death of the employee,
termination (fired, or laid off through no fault of the employee), a
reduction in work hours except if due to gross employee misconduct, a
spouse's divorce or legal separation from the covered employee, a
covered employee being eligible for Medicare, or a child that loses his
dependent status under the plan. The COBRA health insurance program
covers many contingencies.
Insurance professional Morgan Moran says, "COBRA health insurance
provisions will apply to private employers with at least 20 employees.
Individual state and local governments may also make rules regarding
eligibility for COBRA health insurance. Take note that the COBRA health
insurance provisions don't apply to health insurance plans sponsored by
the Federal government. Also, these provisions don't apply to certain
church sponsored insurance plans, or certain church-related
organizations.