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FIVE COBRA HEALTH INSURANCE FAQS ANSWERED

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/

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AM I ELIGIBLE FOR COBRA HEALTH INSURANCE?

The importance of health insurance to the average American is very glaring today. It is one thing that everyone want to provide for themselves and their families. The truth is some insurance plans are priced at exorbitant prices, whereby not everyone can afford them.

Well, the government of the United States of America have decided to come to the aid of Americans. They have set up government health insurance plans that can be afforded by almost anybody. One of such plan is the COBRA health insurance.

What is COBRA health insurance?

COBRA is an acronym that stands for the Consolidated Omnibus Budget Reconciliation Act. It was created and signed into law by the United States in 1985. The major aim of COBRA is to help those that have been laid off from work, retired, fired, and also those that quit.

The COBRA health insurance is not a lifetime insurance. It does not last for more than three years, depending on the state that you are from. Within the period that one enjoys its benefits, you are advised to seek other alternatives before it ends. This is highly important so that you do not get stranded and confused. Checkout more about Cobra health insurance on https://www.animalloverpetcare.com/using-cobra-for-health-and-medical-insurance-coverage/

Am I eligible for COBRA health insurance?

Unlike insurance plans under the Affordable Care Act (ACA), not everyone is eligible to register for COBRA. There are several underlying situations that qualifies one for COBRA health insurance. These situations are collectively called “qualifying events.”

No need racking your brains on your brains for the qualify events that determines your eligibility, as we already have the answers here. Below is a comprehensive list of business types and individuals that are eligible for COBRA.

AM I ELIGIBLE FOR COBRA HEALTH INSURANCE?

  • A private business with less than 20 employees is not eligible for COBRA. The only instance that private businesses are eligible is when they have more than 20 workers and have been operating for over 3 yrs. Only then can such businesses offer COBRA coverage to their employees that are qualified.
  • Your employer must have registered you under you under his employer-sponsored health plan.
  • You must have been laid off from work, fired, retired or quitted the job. Also, COBRA also makes provisions for those that have had their work rates reduced by their employer. This really holds when your salary was reduced as well.
  • The wife, children, and relatives of those under COBRA health insurance also get to benefit from it.
  • Even after a divorce with your spouse, you can still enjoy COBRA benefits under his name.
  • The demise of your eligible spouse does not take your eligibility status either.

Hence, all we have to do is ask questions. Do not sign up for what you know nothing about. If you are not sure of the terms and conditions? Speak with the human resources in the organization you work in.

Remember that COBRA enrollment starts a day after you undergo any of the qualifying events. You have 60 days to register for it. If you do not register within the time frame, you would have to wait for the next enrollment period.