Frequently Asked Questions
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Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that requires your employer to allow you to keep your current health insurance plan for a period of time. If you quit or lose your job, your hours are reduced, or something else happens that negatively impacts your job or ability to keep your employer-sponsored health care, COBRA ensures you will be able to maintain your insurance.
COBRA health insurance will allow you to pay for all of your health insurance, including your employer’s portion, in order to continue the plan for a period of time. The COBRA insurance definition comes down to one important thing – making sure you are able to keep your current insurance plan while you are between jobs.
The COBRA benefits bring many people comfort, because even though their job may have been impacted, they can rest assured that they will continue to have health insurance for them and their family. Prior to 1985, when COBRA became federal law, if you were between jobs, you would lose your health insurance. COBRA health insurance became the remedy for this situation, so that people are able to choose to remain covered.
There are COBRA insurance rules that people need to be aware of in order to use the health insurance plan. You are typically qualified for COBRA benefits if you have lost your job, whether voluntarily or involuntarily, or your hours have been cut. If your employer was providing you with group health insurance, then you should be eligible to continue receiving that same coverage. The only difference is that you will be paying for the entire cost of the insurance plan, rather than your employer picking up a portion of it.
Where you worked comes into play when it comes to whether or not you qualify for COBRA health insurance. In order to qualify, your employer had to have at least 20 employees or more than half of its typical business days during the prior calendar year. If you worked for a small company that only had a couple of employees, then you wouldn’t qualify for COBRA benefits. If you worked for a larger company that had at least 20 employees, then you would have access to COBRA.
If you quit your job and your employer met the COBRA requirement of having at least 20 employees, then you should qualify for the benefits. COBRA is available to everyone who had group health insurance through their employer, whether they quit their job or they were let go. It’s also available to those who have had a reduction in their hours worked, and if there is a death, divorce, or legal separation of the spouse who has the employer-sponsored health insurance.
If you have quit your job and you had group health insurance, you may be qualified to purchase COBRA benefits. These benefits will provide you with continued health insurance coverage during your job transition. Many people have COBRA health insurance in place while they are between jobs, and then enroll in the health care plan offered by their new employer. If you are not sure if you qualify for COBRA, contact us at CobraHealthInsurance.org, and we will help you figure that out.
There are cobra insurance rules and coverage you need to know about. When your group health insurance has been negatively impacted by a change in your job status, you have a period of 60 days in which you can apply for COBRA benefits. During that time you have to decide if you would like to continue your employer-sponsored health insurance plan, and do the necessary enrollment to keep it going.
How COBRA health insurance works is that you elect to continue the coverage you have that was being sponsored by your employer. At that point you will be required to pay for all of the insurance yourself. By making the premiums for the health insurance, you will be able to continue with the coverage you had in place, which was being provided by your employer. Your COBRA coverage will be identical to the plan you had in place with your employer. The length of time that you can continue to have COBRA health insurance depends on the qualifying event that led to needing the benefit, ranging from 18 months to 36 months.
If you elect to take advantage of COBRA health insurance, you will find it can be costly. That’s because you are paying for the employer’s portion, as well as yours. Even if you were paying toward your health insurance each month, your employer was also paying a portion. Once you elect to take COBRA you become responsible for paying your portion, as well as the employer’s portion and a small administrative fee for the benefits.
Your COBRA benefits will be 102% of the health care plan that you are enrolled in. This reflects your portion, what your employer was paying, and the small administration fee to continue the coverage. Many people find it unaffordable to continue COBRA benefits. Contact us here at CobraHealthInsurance.org, so we can give you a rate on a new health insurance plan. You can compare that rate with the COBRA health insurance rate to see which option is the best route for your situation.
Simply give us a call to get a quote in 5 minutes. We helped many Cobra customers get a short term health insurance plan which ended up being more affordable and still offers the coverage you need. Call us now