The importance of affordable health care insurance in the society cannot be overemphasized. It reduces the strains on the finance of all and sundry. That is why the government of the United States have put up several policies to cater for the health insurance of her citizens.
One of such polices is the COBRA health insurance. Not everyone is aware of how it works. Most people are familiar with OBAMACARE health insurance than they are of COBRA. Well, this article aims to change that.
Here, we provide answers to five most frequently asked questions about COBRA health insurance.
What is COBRA health insurance?
First of all, COBRA is an acronym that stands for the Consolidated Omnibus Budget Reconciliation Act. It is a law set up by the government in 1985 to cater for the health insurance needs of retirees, the unemployed, and so on.
COBRA was established so that individuals that experience job loss would not feel stranded. It provides this group of individuals with health insurance coverage for a restricted timeframe.
Private establishments with no affiliation with the government are eligible for it. The basic requirement is that the establishment must have over 20 employees. Owners of such business have been advised to offer COBRA coverage to employees based on their eligibility. More details!
Who is eligible for COBRA continuation of benefits?
Unfortunately, not everyone is eligible for COBRA health insurance. Apart from the private business that was buttressed above, COBRA is only available to individuals in certain circumstances. Some of these circumstances may include the following;
- As an employee, you must have been under a group health insurance plan in your work place.
- In the events of retirement, resignation, or being fired from work, you become qualified for COBRA.
- A reduction in your work rate that reduces your salary qualifies you too also qualifies you. Especially when your employer removes you from the group insurance plan.
- The wife, husband, divorcee, child, and relatives of anyone under COBRA is qualified for it.
What plans are recovered under COBRA continuation of benefits?
Under COBRA continuation of benefits, eligible candidates are offered the same coverage as their employees health group plan. This means it is the same benefits that you were eligible for under your employer that COBRA provides.
COBRA does not cater for voluntary services. It does not cater for supplemental coverage either. Supplemental coverage may include hospital care insurance, disability, and life insurance.
What is COBRA so expensive?
COBRA is more expensive than most of the other government health insurance plan. This is so because COBRA pays a 100% of all the cost incured by your health plan. Additionally, COBRA is also liable to cater for your employer’s health plan that he/she paid for. All these make COBRA more expensive.
May I get insurance coverage outside of the COBRA continuation of benefits?
Because COBRA does not cover all kinds of healthcare plans, you are allowed to have an additional insurance plan. This will better safeguard you and your health in its entirety. Learn more details at: https://www.animalloverpetcare.com/using-cobra-for-health-and-medical-insurance-coverage/