COBRA Health Insurance - What is It?

by Morgan Q. Moran

What is COBRA and how do I get it?

Prior to 1986, loss of employment would also mean that you and you family would lose your 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. There are, however, certain qualifying conditions. COBRA is most likely a good option for unhealthy individuals. The qualifying conditions include, but are not limited to:

  • 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

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."

Mr. Moran furter states, "If you are a former employee who has elected to receive the continuation offered by COBRA health insurance agree to take over payment of the plan's premiums. The former employer has the optional right to charge an administrative fee of up to 1%. If you lose eligibility for group coverage for yourself, or your dependents, there may be another option. Automatically enrolling in COBRA health insurance may not be your best bet. You may have the right to 'special enroll' (without waiting for an open enrollment season) in other available group health coverage. Before deciding to enroll in COBRA health insurance, be sure to carefully weigh all your options."

Mr. Moran sums it up by stating, "If enrolling in COBRA health insurance is your only option, then get the coverage. Continue to protect yourself, and your family until you find a new employer, or new insurance. Contact your state's Department of Insurance to learn your full rights under COBRA health insurance. In many instances you may qualify for an individual health insurance policy. If you need help on where to find more information on Individual Health Insurance coverage please visit www.FloridaHealthInsuranceWeb.comm, a trusted source for health insurance."

For more information on COBRA and individual health plans check out the following:

Tidbits and Stuff

ABOUT THE AUTHOR: Morgan Q. Moran is a licensed insurance agent in the state of Florida and is the managing partner of The Moran Financial Group www.floridahealthinsuranceweb.com. His strong background in financial management includes: insurance, annuities, and asset management. He has proven methodologies to help his client with all aspects of financial risk management. Morgan holds a B.S. degree from the University of Vermont in Business Administration with concentrations in both marketing and finance.
Article Source: http://www.articlesbase.com

This document last modified Tuesday, 06-May-2008 07:55:08 EDT



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