COBRA Health Insurance
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In 1986 Congress passed the Consolidated Omnibus budget Reconciliation Act (COBRA) in order to provide continued group health insurance coverage that might otherwise be terminated. COBRA is not an insurance plan or company, it is a law. COBRA health insurance provides retirees, some former employees, spouses, and dependant children the right to temporary health coverage at group rates under certain conditions.
Health insurance under COBRA tends to be more expensive for participants than health insurance provided for active employees since employers usually pay part of health insurance premiums. However, it is usually less expensive than individual health insurance.
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To get a free COBRA health insurance quote from several top-rated health insurance companies, use the form below.
Details of COBRA Insurance
COBRA health insurance applies to plans in both private sector as well as those sponsored by state and local governments, provided previous health plans in the prior year were maintained by twenty or more employees. Group health insurance plans are defined as plans utilized by employers in order to provide medical benefits for employees and their dependants through insurance or otherwise.
COBRA defines some of these alternative plans as trusts, health maintenance organizations, self-funded pay, reimbursement, or a combination. COBRA medical insurance benefits include:
- Inpatient and outpatient hospital care
- Physician care
- Surgery and other medical benefits
- Prescription drugs
- Any other medical benefits such as dental and vision care
Under COBRA, after termination of employment, you have sixty days after to decide whether or not to take advantage of continued health insurance coverage. The employer will ask that you pay for the premium on the health insurance plus a 2% surcharge. Obtaining COBRA health insurance allows you to continue using the same benefits as under the previous employer’s health insurance plan. People under the program receive the same benefits as current employees so if the employer’s medical insurance plan changes, so does the plan under COBRA.
You should seriously consider continuing coverage under COBRA health insurance if you:
- Have had recent health problems
- Have recently acquired a job and the new employer does not offer a health benefit plan
- Are pregnant or planning to become pregnant
- Have a history of medical problems
- Are taking expensive medications
- Want guaranteed continual health care coverage, but at a higher cost
- Have ongoing health problems
- Have comprehensive benefits and don’t mind paying more for them
- Have been declined recently for private insurance
- Have had an accident within the 60 day enrollment window
COBRA health insurance lasts a minimum of 18 months and a maximum of 29 months. After the original 18 months, it may be extended if you:
- Become disabled within the initial 18 month period
- Leave the original job for disability reasons
- Or become eligible for Social Security Disability Insurance within the initial 18 month period
and may terminate if:
- the employer stops plan coverage for all employees, or
- you fail to pay the premium on time, or
- you obtain coverage through another employer group plan, or
- you elect to stop COBRA and replace it with an individual health coverage, or
- you become eligible for Medicare
To read the full text of COBRA 1986 visit: www.cobrainsurance.com.
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