Cobra Health Insurance
A Insurance Article Contributed by Manoj Kumar
Cobra Health Insurance Coverage
COBRA (Consolidated Omnibus Budget Reconciliation Act) was introduced in 1985 in order to provide temporary health insurance coverage for a specific time period to certain former employees, retirees, spouse and depended children at prevailing group health insurance rates. COBRA health insurance helps employees to continue their group insurance coverage for a period up to 18 months in case of termination of employment either by the employee or the employer.
Benefits covered under COBRA health insurance policies are as follows -
* Hospital care (both inpatient and outpatient)
* Physician care
* Surgery and relating medical benefits
* Coverage for prescription drugs
* Dental, vision care and such other medical benefits
COBRA health insurance however does not provide for life insurance coverage.
In order to avail COBRA health insurance plans employees are required to pay full value monthly insurance premium and not the discounted amounts offered by their employers. COBRA health insurance plans are therefore more expensive compared to your existing employees group medical insurance.
If Cobra Health Insurance is Expensive Then Why Should You Opt for It?
COBRA health insurance is definitely more expensive compared to traditional group health insurance plans, but in certain instances taking a COBRA policy may be your best option to obtain health insurance coverage. Take a look at few instances where you should opt for COBRA health coverage:
* If you have any current health problems including any pre-existing conditions for which you are undergoing treatment. It is difficult to purchase private health insurance with coverage for pre-existing conditions.
* If you do not qualify for private health insurance due to any specific health conditions.
* If the private health insurance costs are beyond your level of affordability
* In case you're subsequent employer does not provide group health insurance coverage.
Benefits of Cobra Health Insurance Coverage
You can purchase COBRA health insurance to enjoy the following benefits:
* No complicated application procedures as you have already completed the paper work while applying for the employer group health insurance.
* You do not have to pay extra charges to cover for your pre-existing health conditions if any.
* Can avail the same level of coverage offered under your employer's group health insurance plan.
* On expiry of COBRA health insurance you can avail protection of HIPAA (Health Insurance Portability and Accountability Act), provided you qualify for the same.
How to Purchase Cobra Health Insurance Plan?
A COBRA health insurance does not accrue automatically upon the termination of your employment group insurance plan. Take a look at the specific sets of procedures to adopt in order to purchase COBRA health insurance.
* Upon cancellation of your employment group health insurance you should inform your employer that you require COBRA insurance.
* Your employer must within 30 days notify the COBRA health insurance plan administrator about the qualifying event
* COBRA health insurance plan administrator is required to notify or get in touch with you within 14 days
* You should then, within 60 days of being notified select the coverage.
* Once you select the coverage you will be required to make the initial payment within 45 days.
