What is Cobra Health Insurance?
In 1986 Congress passed the Cobra health insurance amendment. The COBRA or 'Consolidated Omnibus Budget Reconciliation Act' is a law that made a significant change to the Employee Retirement Income Security Act (ERISA), the Internal Revenue Code and the Public Health Service Act. What does that mean to you?
Cobra made it possible for group health insurance coverage to continue after retirement or for former employees, spouses and dependent children to continue to receive health benefits on a temporary basis at group rates. Cobra health insurance extensions are applicable in certain situations only. Employees are generally covered if they leave their job or are laid off. In this case benefits continue for at least 18 months.
If your spouse was covered under a group health insurance policy and you are widowed or divorced you will be able to get Cobra health insurance benefits. If you were previously covered by a parent's health care plan and have left school, you are eligible to continue to receive benefits until you find work that provides a health care plan.
Cobra health insurance coverage typically costs a little more than it would for active employees. This is because the employer initially paid a portion of the insurance on behalf of the employee. It is, however still cheaper than an individual life insurance policy.
In terms of the law, Cobra health insurance cover is aimed at group health plans where the number of employees is 20 or greater. Plans in the private sector are covered as are those which are sponsored by state and local governments.
Cobra health insurance won't cover plans sponsored by the Federal government and some religious-oriented plans. People who qualify for benefits under CORA will be eligible for: inpatient and outpatient hospital care, care from a physician, payment for surgical procedures and any other major medical expenses, prescription drugs and dental or vision care.
To find out if you are eligible for Cobra health insurance benefits and for more information about the plan visit CobraInsurance.com at http://www.cobrainsurance.com.
