Are you one of the many Americans who have been laid off in recent months? Are you concerned about no longer having health insurance benefits for you and your family in addition to the loss of income? If so, you will want to know more about the COBRA Insurance plan provided by the federal government.
Don’t make the mistake of thinking that you don’t need health insurance. If your health insurance lapses, you may have a problem covering yourself and your family when you do get a new job. It is also not a good idea to ‘play the odds’ and hope that you will not need medical coverage; it is impossible to predict when accidents or illness may occur.
Who Qualifies?
Simply put, COBRA allows separated employees to purchase supplemental insurance coverage that spans the gap between jobs. The provider of the plan is the individual’s most recent employer. The benefit is provided to anyone who has been laid off, terminated for a reason not including gross misconduct, or had their status reduced to part-time, making him or her ineligible for health insurance coverage. Dependants that were included on the employer’s policy are also eligible.
If you have been without a job for some time, the American Recovery and Reinvestment Act (ARRA) provides extended COBRA benefits to anyone who lost employment in the period between September 2008 and February 2009. If you are still without employment now, you could now be eligible to receive health insurance with your last employer’s plan.
Paying for COBRA Insurance
Be aware that after separation from your employer, you will have to pay the entire health insurance premium out of your own pocket. However, there is some good news. For one, the cost is often less expensive than acquiring an individual insurance plan. The second piece of good news is that the federal government offers a subsidy to those who cannot afford the premium, up to 65%.
What You Need to Know After Losing Your Job
It is your employer’s responsibility to report the separation and eligibility for COBRA benefits. There are various regulations that apply to determine who is eligible, what companies are required to offer COBRA, and what events qualify for the continued health insurance benefit. If you feel that you should be able to continue to receive coverage, you may want to consult with a company that can help you sort out the details.
The employee has 60 days to decide whether he or she wants to take advantage of COBRA benefits. If the former employee does elect to continue health insurance coverage, there is a 45 day period in which the first premium must be paid.
In addition to federal regulations, each health insurance provider will have its own rules and requirements regarding how claims are filed. They also have the option of ruling you ineligible for plan benefits. If you are denied COBRA benefits, you have the option of protesting this assessment within 60 days. Of course dealing with an insurance company is never uncomplicated so this may be another instance when assistance is required
Many times there are special circumstances that apply to continued health insurance coverage through COBRA insurance extension. Luckily, you do not need to sort out all the issues, rules, regulations, and specifics yourself. There are resources available to help those who are entitled to the benefits receive them. See the website for more details.
Looking to find more information on the Cobra Extension? Then visit www.cobraextension.org to find the best advice on Cobra Insurance Plan to help you.