COBRA

November 2, 2010

COBRA

Consolidated Omnibus Budget Reconsiliation Act begain in 1985.  COBRA is defined in the book as, “requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to thirty six months following a qualifying event.  I wanted to talk about COBRA and some of the ways and situations that someone can qualify for cobra insurance. 

Several events that can cause workers and their family members to lose group health coverage may result in the right to COBRA coverage. These include:

• Voluntary or involuntary termination of the covered employee’s employment for reasons other than gross misconduct
• Reduced hours of work for the covered employee
• Covered employee becoming entitled to Medicare
• Divorce or legal separation of a covered employee
• Death of a covered employee
• Loss of status as a dependent child under plan rules

We are all searching for our perfect career.  A permanent career that we can work at and love what we do.  However throughout a career, whether it be one we love or hate, employees will go through life events that might cause career changes or job losses.  COBRA began so that workers and their families can keep their insurance coverage during times of trouble. If you are facing the loss of your group health insurance coverage it is important that you know about COBRA and how it can protect you.

I think COBRA is a great way for people going through  a rough time to continue being covered with health insurance.  Employees still have to pay but they are given a “group rate”.    According to "Bill Aims To Subsidize Health Care For Laid-Off", only 10% of Americans eligible for COBRA insurance in 2006 used it, many because they were unable to afford to pay the full premium after their job loss.  Any organization that offers medical insurance must meet the requirements of COBRA.  COBRA brings opportunites to those in a "rough spot" and it provides employees and their families access to the same insurance services as to those who did not lose their health insurance. COBRA might have a lot of different restrictions, qualifications, and might cost more money than usual insurance, but it will probably end up helping more people than not.