Cobra Positives For Former Employees

In 1986, COBRA was introduced into the work environment. COBRA simply stands for Consolidated Omnibus Budget Reconciliation Act and was a way to ensure that health care insurance could still be available to employees who were either terminated or left on their own from jobs that offered health insurance. There was however an exception; being fired for gross misconduct. COBRA was also required to be offered to employees when the number of hours worked in a week was reduced, making them ineligible for benefits. At this point the employees receiving COBRA was fully responsible for the premium total that must be paid, because the employer is no longer part of the equation.

People are eligible to take COBRA for up to 18 months in most cases. Exceptions can be made if the main policy holder dies or becomes disabled within the first two months of being on COBRA. In the first instance, the family of the deceased has up to three years to remain on COBRA, and in the case of disability, COBRA can be extended to a total coverage time of two years and five months.

There are many reasons why people choose COBRA. One reason is that if the person was undergoing regular medical treatment while being employed, it is in their best interests for the policy to continue uninterrupted and not have to worry about the preexisting condition clauses that many new policies have that go back to six months prior to signing up for new plan coverage and it also applies to prescription medication payments.

People who are financially supporting a spouse and children usually opt to take COBRA due to the need to have continuing health care coverage in case of a serious injury or illness of a family member. COBRA is a way for former employees to lessen the financial risk their family must face during their time of transition to a new job or career.

Yet another reason people opt to continue health coverage through a former employer is that most new employers require a waiting period before a person becomes eligible for health insurance and other benefits. COBRA is seen as a bridge during times of moving from one employer to another.

Obtaining COBRA is very possible and easy if your employer offers health insurance. The employee must be notified within 30 days of their termination and be given the option to continue their coverage through a COBRA plan. The employee also has 60 days to decide what coverage they want and make the necessary first premium payment and there is no retroactive coverage or benefits prior to the first payment being paid.

By: Ethan C Kalvin

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Keep up with your family health insurance or COBRA so that you have the coverage that you want. A decent Health insurance policy is very important.