The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan.
COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.
COBRA outlines how employees and family members may elect continuation coverage. It also requires employers and plans to provide notice. You can call a Benefits Advisor at this toll free number listed on their internet site.
Another possibility for coverage are the large health-insurance companies which also offer individual policies. It is likely, however, that your coverage will not be as good as it was at your company.
At the very minimum, look for a catastrophic medical policy which may be very high in deductibles but it will cover major medical expenses. There are also 6-month policies which can bridge your coverage if you know when you’re starting a new job.
Also note that The American Recovery and Reinvestment Act of 2009 (ARRA) provides for a 65% reduction in COBRA premiums for certain assistance eligible individuals for up to 9 months. The eligibility is tight. An assistance eligible individual is a COBRA “qualified beneficiary” who meets ALL of the following requirements:
Is eligible for COBRA continuation coverage at any time from September 1, 2008 and ending December 31, 2009;
Selects COBRA coverage when first offered or during the additional election period, and:
Has a qualifying event for COBRA coverage that is the employee’s involuntary termination during the period beginning September 1,2008 and ending December 31, 2009.
Those who are eligible for other health coverage, such as a spouse’s plan or Medicare are not eligible for the premium reduction. Other limitations may also replay. There is no premium reduction for periods of coverage before February 17, 2009.
This information is complicated and if you need more information or explanation on this qualification, contact a Benefits Advisor at there toll free number listed on their internet site.
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