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Understanding COBRA Insurance - Not Many Do.
There are three groups of people eligible for COBRA coverage; employees or former employees in private business, there spouses, and dependent children. You may get COBRA coverage for the maximum period determined by your status. You don’t have to take it at all if you don’t need or want it. State and local government workers are also eligible as well as classified and independent contractors. The only people who are exempt are federal employees in Washington D.C., certain church-related persons, and firms with less than 20 employees. But even in the cases where there are not enough employees there could be eligibility. Some states have mini-COBRA laws for small places to help out those types of employees. The coverage will continue for all persons listed on the original policy and any added dependents during the allotted time frame. To be eligible at all for COBRA you have to be covered under an employer health plan. If you don’t already have medical benefits you won’t qualify for this extended coverage. COBRA isn’t a health care plan of its own; it is only a law that protects workers from losing all insurance when leaving their employer. All jobs will send you the information you need to keep or deny this extended coverage. You may or may not be given pricing information and might want to call the human resource department to find out or the insurance company itself. Your COBRA coverage will end when you reach the last day of maximum coverage, you stop paying the premium, the employer stops providing coverage to employees or goes out of business, or you get new coverage somewhere else, either through work or privately. The plans that are eligible for extended coverage on these types of medical coverage; medical plans, dental, prescription, and vision plans, drug and alcohol treatment programs, and psychological treatment. Paying for COBRA is a personal responsibility to the individual. If you can’t afford it you might have to pass and not be covered. The premiums can be very costly for people and even more than when the person was employed. Employers get a fixed rate based on the number of employees they have enrolled. The more employees they have enrolled the cheaper the premiums for all employees. A person on COBRA doesn’t qualify as an employee and will be seen as a private insurer through the company. You will receive the exact same benefits you had when you were working for your job. An employer should advise you on all COBRA possibilities, and not just the cheapest or most expensive. If you had more than one plan then you have the right to elect continuing coverage in any or all of them. If your former employer changes its health insurance plan for its current employees, you are entitled to receive benefits under the new plan as well, although the benefits you get may change. If your employer switches plans, you won't be able to keep the old plan, you will have to choose to go to the new plan or drop coverage. DISCLAIMER: This information is for educational and informational purposes only. The content is not intended to be a substitute for professional advice. Always seek the advice of a licensed Insurance Agent or Broker with any questions you may have regarding any Insurance Matter. About the author of: Understanding COBRA Insurance - Not Many Do Thomas Hunter is an Internet marketer, author and publisher and has helped hundreds of people save money on their health insurance. Visit us at http://DiscountOnlineQuotes.com spend 5 minutes and get your no obligation Health Insurance Quote. Article Source: http://netsalesinc.com If you have a website or ezine you may freely post this article on your site as long as you include the full resource box above. All links must be active / clickable with no syntax changes.
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