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eLearning Series:
Your Most Popular Insurance Questions
Answers For Health and Home
Insurance
( 50 articles
in this series )
COBRA Insurance
Coverage:
What You Need To Know
COBRA Insurance coverage is something many
people don't understand or how it works for them and the benefits
they can draw from it. COBRA might just be what you’re looking
for to fill those insurance needs. But lets look at what COBRA
is and if it's in your best interest to continue it or end
it.
COBRA is also known as the Consolidated
Ominbus Budget Reconciliation Act of 1985 or COBRA for short. COBRA is still a very useful
law to many and people still use it today. COBRA makes
it possible to keep health insurance coverage from their employer
for up
to 18 months if their employment status changes. Some of these
changes could be layoff, reduced work hours or a termination
of employment by either party involved.
COBRA has helped countless Americans keep insurance coverage.
Now, is it good for you or not? Many times when individuals
lose health coverage they have a very hard time getting coverage
in the private sectors for various reasons. If they do find
insurance coverage it's extremely expensive and many times
not feasible for the displaced worker. For the worker to continue
his insurance coverage through his employer he must pay the
monthly premium, which can add up because he's not getting
a discounted price anymore.
Internet
access has helped many people find various health care
programs. Now people can get on the Internet and do their
own research and find out which company can give them the best
deal and will give them the most benefits for the money. Since
the Internet encompasses so much information more choices and
comparison-shopping has became the buzzword.
Now one of the most important questions you need to ask yourself
is whether or not to continue COBRA insurance coverage
from your employer. If you have many health problems that are being
treated right now you probably should strongly consider using
the COBRA insurance option. Having health problems with pre-existing
conditions could make it very difficult for you to get insurance
coverage. If you do get health care coverage it will be so
expensive it wouldn't be worth it.
If
you are changing jobs and you know that your new employer
doesn't offer health care coverage or if you know you won't
qualify for the new company's health plan then highly consider
COBRA as a viable option. It is also a good idea not to have
gaps in health care coverage, as this tends to get you a better
deal.
If
you tend to be on the healthy side then you can choose
not use COBRA as an option. There are a few reasons for that.
Being healthy you should shop around as you will be able to
get better coverage and at a more affordable price. Insurance
companies love to insure young healthy individuals as they
know it usually costs them a lot less money therefore, they
will be glad to give you a good deal on your health care needs.
There are a few things you should know about COBRA so you
can make a very informed decision. Once your health
care coverage is lost, you are given a 60 day grace period in which time
you must chose to use COBRA or not, otherwise you will lose
it all together. Once the 60 days has past, it is not offered
again. COBRA also has provisions that give certain former employees,
retirees and spouses the right to get temporary continuation
of health care coverage at group rates.
Some of the things that COBRA will continue to cover if you
decide to keep the coverage are:
- Inpatient and outpatient hospital care
- Physician care is also covered under COBRA
- Surgery and major medical benefits
- Prescription drugs are also covered but life insurance is
not covered under COBRA.
COBRA has many advantages and disadvantages and just like
anything else an informed decision will take some time and
research. COBRA has been helpful to many employees and will
continue to provide coverage when needed for many more years
to come. For some COBRA just doesn't fit into their plans;
each individual will have to choose whether COBRA can benefit
them.
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SolveYourProblem.com : 2005
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