How To Understand Your COBRA Rights
COBRA, or Consolidated Omnibus Budget Reconciliation Act, gives you the right to continued group insurance under most circumstances for a limited time. COBRA benefits are usually more expensive than the group rates you paid while employed as your former employer is no longer footing part of the bill, but in many cases is less expensive than independent insurance. For some situations, it might be the only method to keep insurance for situations like ongoing treatment and pregnancy.
What is COBRA?
The Untied States Government passed the Consolidated Omnibus Budget Reconciliation Act in 1986 to extend health care coverage that might otherwise be terminated. It gives you options when it comes to healthcare.
Who Qualifies?
There are many situations that qualify you, your spouse or your dependents for COBRA benefits. In most cases, unless you were fired for gross misconduct, you, your spouse and dependents all qualify. Other circumstances also allow for benefits including death, divorce, qualification for Medicare, reduction in working hours and if a child outgrows dependent status.
Why COBRA?
If you were laid off or chose to leave a job, but don’t have another one with benefits already lined up, COBRA might be a nice way to bridge the gap without having to find other insurance. Benefits can last for one to three years and once you are approved, you can continue with the same methods of treatment you’ve been using up to that point. This is especially important for those with ongoing treatments for long term diseases, conditions and pregnancy where finding other insurance with the same coverage might be almost impossible.
COBRA benefits are often a bit less expensive than a similar plan through independent insurance.
What Do I Do?
When you leave a position or come into another situation which entitles you to COBRA benefits, you will receive a letter from your former employer within 14 days. You then can apply for benefits and your specific situation determines approval. Generally you have up to 60 days to apply, and coverage begins on the first day you would normally have had coverage – even if you elect the plan 60 days after that time.
For additional information, the United States Government has a list of FAQ available here.
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