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.
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.