COBRA Health Insurance Coverage
COBRA (the Consolidated Omnibus Budget Reconciliation Act of 1985) is a federal law which is designed to ensure that people can continue to receive health insurance coverage for up to 18 months following the termination of his employment. Many, but not all, of the companies which offer group health insurance schemes to their employees are subject to COBRA. In certain cases Cobra health insurance coverage may be extended from 18 months up to a maximum of 36 months.
COBRA insurance coverage protects people against losing their health insurance benefits when they lose their employment and is a temporary measure designed to help people through what is often a difficult time. Not every employee who loses his job will qualify for COBRA insurance but employers need to be conversant with COBRA health insurance law and have to be able to advise their employees on their entitlement.
COBRA health insurance law allows a terminated employee to purchase health insurance for himself and his family (as long as the family was covered during employment) at the group coverage rate even though the employee is not technically a member of the group any longer. However, the downside is that the COBRA health insurance price can be high as the employee will now need to pay 100% of the monthly, together with an additional surcharge of 2%.
Although COBRA insurance most often comes into play in cases of termination it can also come into effect as a result of a change of employment status such as reduced hours, or divorce from an employee of eligible status. Cover will usually continue for the time specified in the act or for a shorter period if the employee decides to take out individual health insurance cover or joins another group health insurance plan.
As COBRA insurance extends health insurance for terminated employees for a period of 18 months, there is no need to worry about a change in health insurance benefits. Cover under COBRA health insurance remains the same as that provided during employment and the only change is in the responsibility for the payment of monthly premiums. However, it should be noted that it is possible for the benefits under a COBRA plan to change if an employer changes the health insurance plan being offered to current employees during the period of cover.
The most important thing to remember about COBRA health insurance coverage is that it is designed to be a temporary measure and, while it guarantees continued health insurance coverage for a period of up to 18 months, once this period expires you will need to make alternative arrangements.
One danger with COBRA insurance lies in the very fact that it is temporary. For example, if you fall ill while covered by COBRA you could find it difficult, if not impossible, to get future health insurance if this illness is classed as pre-existing or is 'uninsurable' when you come to apply for insurance at a later date.
Claims investigation: The process of obtaining all the information necessary to determine the appropriate amount to pay on a given claim.
Health Care Quality Improvement Act (HCQIA): A federal act which exempts hospitals, group practices, and HMOs from certain antitrust provisions as they apply to credentialing and peer review so long as these entities adhere to due process standards that are outlined in the Act.
Premium taxes: State income taxes levied on an insurer's premium income.
Workers' compensation: A state-mandated insurance program that provides benefits for health care costs and lost wages to qualified employees and their dependents if an employee suffers a work-related injury or disease.
Reid to McConnell: Reconcile this. - Washington Post (blog)
11 Mar 2010 at 1:20pm
National Post
Reid to McConnell: Reconcile this.
Washington Post (blog)
... been used many times for a variety of health-related matters, including the establishment of the Children's Health Insurance Program and COBRA benefits, ...
UPI NewsTrack TopN...
US Sen. Harkin: Applauds Senate bill to extend unemployment, health insurance...
11 Mar 2010 at 9:05am
New York Times (blog)
US Sen. Harkin: Applauds Senate bill to extend unemployment, health insurance ...
IowaPolitics.com (press release)
The legislation also extends loan programs for small businesses and tax benefits that provide the tax certainty b...
Do Republican Senators Hate Unemployed Americans? Seems Like It? - The Faster...
11 Mar 2010 at 11:27am
The Faster Times
Do Republican Senators Hate Unemployed Americans? Seems Like It?
The Faster Times
With the Senate finally passing an extension of unemployment benefits and COBRA health insurance subsidies the efficacy of unemployment insurance is ag...
Will health reform cause the next bailout? - The Week Magazine
11 Mar 2010 at 8:20am
Sydney Morning Herald
Will health reform cause the next bailout?
The Week Magazine
But even subsidized, the monthly cost of COBRA benefits is $388 per California family. Rather than pay almost $5000 per year for health insurance they ...
Getting Rid o...
|
