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COBRA Health Insurance

COBRA health insurance is an option for those who have experienced the unfortunate lay- off from a job. COBRA is an acronym, which stands for Consolidated Omnibus Budget Reconciliation Act of 1985. Under this federal law, one is provided with a back up health insurance cover called COBRA insurance cover in a time of need, when one is not currently covered by insurance for a variety of reasons. This law was put in place to protect your right to continued health insurance, after a circumstance occurs which would otherwise leave one without health insurance coverage. Some of the circumstances under which COBRA insurance cover is eligible are:

-involuntary loss of employment (lay off, downsizing, terminated)

-voluntary termination of employment (you quit)

-marital separation or divorce

-if you were a dependent on your guardian/parent’s policy, and you become ineligible (no longer dependent), due to age or no longer attending college

-if your spouse (who is the employee with the insurance coverage) dies

COBRA allows one to have the same coverage one had prior to the unexpected event/circumstance. The continued health benefits are covered for a specific amount of time, and will be entirely at one’s own cost. In most cases, the time frame for continued coverage lasts 18-36 months.

An example of COBRA health insurance cover is given below:
If you are employed and if the company pays for, say, 60% of the health insurance premium, after the unfortunate event of layoff or termination of employment, you have the option of continuing the health insurance cover by paying 100% of the premium. The total cost would be less than a private insurance as this premium would have been worked out based on a group rate for the company. This COBRA insurance cover, as mentioned above, may last for a period of 18 to 36 months.

For more information on COBRA Insurance visit all insurance companies presented on this website.