Starting in 1986, all United States companies that provide health insurance to their workers have been required to offer an extension of coverage to those who terminate their employment. This condition was established through the passage of the Consolidated Omnibus Budget Reconciliation Act (COBRA). The purpose of COBRA is to allow employees, retirees, and their families to continue receiving group coverage even after benefits have lapsed.
Typically, those receiving COBRA insurance are charged at a higher rate than those on the same group plan, but without COBRA. Despite this hiked monthly cost, however, COBRA costs are typically lower than individual plans the former employee would otherwise have to purchase.
In general COBRA coverage will apply to the following forms of health care, if they were included under the original plan:
* Visits to and treatment by a physician
* Hospital care, both inpatient and outpatient
* Surgery and other major medical procedures
* Prescription medications
* Dental/vision, if applicable
While what is covered under COBRA insurance is quite extensive, life insurance is not included.
Do I qualify for COBRA insurance?
Not everyone who leaves a company or somehow, otherwise loses benefits is considered to be eligible for continuing health coverage through COBRA. Only under certain circumstances can these former and newly-part time employees remain on the company's healthcare plan. It is important to note the spouses and dependents of eligible employees are also allowed to remain covered through COBRA, as well.
Qualifying employees are those who have undergone one of the following conditions:
* Employment termination for any reason, aside from gross misconduct
* Reduction in work hours, resulting in the loss of benefits
* Ending of a marriage (and your spouse provided insurance)
* Your spouse or parent (whoever earns benefits) becomes eligible for Medicare
* You lose your status as a dependent
* Your spouse or parent (whoever earns benefits) loses his or her life
As you can see, if you are fired for misconduct reasons, you will not be given an option to remain on your healthcare plan through COBRA.
Contact Us
Sometimes it can be difficult to choose between staying on a COBRA plan after you have left your job and opting to be covered by a new, private policy. The experienced agents at Catherine Michaels Insurance Services can help you decide which option is best for you. If you choose to find a new plan, we can help you locate the best California coverage option for you. To contact us about your situation, visit our website today by going to http://www.healthinsuranceofcalifornia.com/.
