Whether you are working or not, health insurance can save you money when it time comes for visiting the doctor and can ensure that you have not developed any hidden health problems. Most health insurance plans stop when you lose your job, but there’s a way to keep your coverage for longer to cover you during the lapse time between losing one coverage and beginning another. COBRA (health benefit provisions passed by Congress) allows you to do just that. COBRA insurance coverage lets you keep all of the benefits that you had from one employer even if you stop working or change jobs, for higher premiums.
COBRA insurance coverage offers same benefits as you would receive from your employer’s health insurance should you choose to take it. This is an optional coverage that may not be for everyone due to higher premiums that you must pay. Because you no longer work for a certain company, half of your insurance premiums are no longer being paid, which means that you must pick up the additional cost in order to maintain coverage. Those individuals with preexisting conditions may opt to pay the higher price to ensure they are covered when they ordinarily would not be.
COBRA is offered conditionally to employees that work under certain conditions. Your employer must employ 20 or more and provide a group health plan to qualify for COBRA. If you opt to take the insurance coverage, COBRA insurance coverage begins on the day that you lose coverage from your employer. How long you can maintain coverage under COBRA depends on several factors, but can range from 18 to 36 months. Coverage remains in effect until the time frame runs out, another job is obtained that offers health insurance, your previous employer stops maintaining a group health plan or you fail to make timely payments.
When you lose your job unexpectedly or find yourself in a divorce when the only insurance you had come from a spouse’s employer, COBRA insurance coverage can be a great benefit for you until you find a cheaper option. Some individuals may opt out of COBRA, if there is no condition that requires continuing medical care, but sometimes the high premiums that you must pay to maintain your coverage could mean a lot to your family’s health. Although there are conditions that apply and the coverage does not last indefinitely, COBRA insurance can be a temporary replacement until better options are found.
Sources:
COBRA Insurance – COBRA Insurance.com Information
COBRA – Health Benefits under COBRA – The Consolidated Omnibus Budget Reconciliation Act #HOW COBRA WORKS