Archive for September, 2008
Monday, September 29th, 2008
What is COBRA?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) is supplemental insurance that people can acquire when they are between jobs or are otherwise lacking in health care coverage. It 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. This may happen 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% of the cost to the plan. COBRA begins on the date when a qualifying event triggers the loss of the health coverage. The law allows from 18 to 36 months, depending on the qualifying event. Employers may choose to provide coverage for longer periods if they wish. COBRA insurance also covers recent retirees, people with disabilities, the spouse and/or children of covered employees.