What is COBRA health insurance coverage, and is this a viable continuation option for the unemployed? This is a difficult question. The truth, at this time, is that if you qualify for COBRA, it may be your best bet for continuation of coverage.
First, COBRA is short for Consolidated Omnibus Budget Reconciliation Act. COBRA is a Federal law enacted in 1986, and it give unemployed workers who have lost their health benefits the right to continue the coverage provided by their group health insurance plan if they meet certain qualifying conditions. COBRA covers group health plans with employers who have 20 or more employees, and it applies to private industry as well as health plans sponsored by state and local governments.
Under the COBRA law, an employee and family members may be able to retain their benefits for a set period of time depending on the reasons for job termination and consequent loss of insurance. Examples of events that might qualify for COBRA coverage include: voluntary or involuntary job loss for reasons other than misconduct, reduction of work hours, Medicare entitlement, divorce or legal separation, death of a covered employee and loss of dependent child status.
COBRA coverage can be expensive. However, and this is crucial, the American Recovery and Reinvestment Act of 2009 provides temporary subsidies to some workers and their families so that they can continue their group health plan coverage. Workers who have lost their jobs between September 1, 2008 and December 31, 2009 may qualify for a 65% reduction in COBRA health insurance premiums. The bad news with regard to COBRA is its cost and without the subsidy, workers qualifying for COBRA could be required to pay the entire premium up to 102% of the plan cost. Even though expensive, it is generally recommended that you opt for COBRA if it is at all possible.
Generally speaking, COBRA benefits last for 18 months, but under certain circumstances, a spouse and dependent children could be eligible for 36 months. If you think you may be eligible for COBRA benefits and would like more information, we recommend you see your employer contact for benefits administration. If that isn't practical, you can also contact your State Department of Insurance for help--this is the state agency that's in charge of overseeing insurance companies and the application of insurance law in your state.
Author Resource:-
It isn't a secret that COBRA health insurance coverage is extremely costly, especially when you are umemployed.
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