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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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USING COBRA FOR HEALTH AND MEDICAL INSURANCE COVERAGE

Most people are unaware of government sponsored insurance coverage. One thing that is appealing about government-sponsored coverage is that they are usually affordable. Apart from the ACA, the government also developed COBRA health insurance.

In this article, a detailed but concise explanation of what COBRA is and it’s benefits are explained.

What is COBRA health insurance?

First of all, COBRA stands for the Consolidated Omnibus Budget Reconciliation act. The law that governs this policy was established in 1985 by the United States government.

COBRA was created with the aim to cater to the health insurance needs of the fired, retired, and laid off work individuals. It provides them with a comprehensive insurance coverage for a restricted amount of time.

Private business with less than 20 employees may not apply for COBRA coverage. This is because COBRA policy does not recognize them. However, if your private business has more than 20 employees, you are eligible. The employers of your business are required to offer COBRA coverage to employees as long as they are qualified. Click here for affordable health care.

Eligibility status for COBRA health insurance

Not everyone is eligible for COBRA. To be eligible you need to have an underlying “qualifying events.” It is these events that determines if you are eligible for COBRA or not. Some of these events includes;

  • Getting fired or laid off your job qualifies you for COBRA.
  • Reduction in work hours by your employer makes you eligible for COBRA. Checkout more about COBRA health insurance on https://www.healthcare.gov/unemployed/cobra-coverage/
  • If you are the wife, children, relative, or divorcee of a COBRA sponsored employee, you are also eligible.

USING COBRA FOR HEALTH AND MEDICAL INSURANCE COVERAGE

Health plans are covered by COBRA health insurance

COBRA health insurance covers the same health benefits that you enjoyed in your employer-sponsored group plan. This is called COBRA continuation of benefits. If you want to change it, you might have to wait for next enrollment period.

There are some health issues that COBRA does not cater for. Some of these health issues include voluntary, supplemental, hospital care insurance, disability, and so on.

Cost of COBRA health insurance

The cost for COBRA health insurance can turn out to be very expensive. Even with that you will enjoy every bit of the benefits. Besides you cannot place a price on your health or that of your family.

COBRA covers pays 100% of all the cost incurred by your chosen health plan. it is because of this that it is expensive. Learn more about COBRA continuation coverage.

COBRA alternatives after leaving my job

The good news is there are several alternatives to COBRA after leaving your job. These alternatives to depends on your condition. If at the end of the day your situation is in compliance with any of the alternatives, you may apply.

Some of these alternatives include partners’ employer-sponsored plan, health insurance marketplace at health.gov, Professional group plan, OBAMACARE, short-term health insurance, independent health insurance, high-deductible health insurance, and so on.

Before the expiration of your COBRA benefits, make sure you already have a back-up plan. You can pick any of the aforementioned alternatives that is best suited for you. Also, ask questions before agreeing to any health insurance deal.