| p>COBRA health insurance is an area of insurance | | | | Generally speaking, if you are an employee at a |
| law that suffers from a certain degree of uncertainty | | | | company that has 20 or more employees and you |
| and yet this law will affect the lives of many | | | | leave your group health plan (or your group health plan |
| Americans at some point in their lives. This is not an | | | | terminates for some reason) for some reason other |
| obscure law that only affects a small number of | | | | than gross negligence then you will be offered |
| people in limited special situations. COBRA (or the | | | | COBRA continuation coverage (There are also |
| Consolidated Omnibus Budget Reconciliation Act of | | | | provisions for spouses and dependent children). |
| 1986) amends the Employee Retirement Income | | | | Practically speaking; should you elect the COBRA |
| Security Act, the Internal Revenue Code and the Public | | | | continuation coverage option? If you or your family has |
| Health Service Act to provide continuation of group | | | | major health issues then yes. If you and your family |
| health coverage that otherwise might be terminated. | | | | are relatively healthy then you will probably want to |
| According to the US Department of Labor; COBRA | | | | compare individual health insurance plans as individual |
| provides certain former employees, retirees, spouses, | | | | rates are approximately half the cost of a comparable |
| former spouses, and dependent children the right to | | | | COBRA group health insurance premium. (Hint: One |
| temporary continuation of health coverage at group | | | | major difference between individual health plans and |
| rates. This coverage, however, is only available when | | | | group health plans is that with individual health plans |
| coverage is lost due to certain specific events. Group | | | | you usually have to pay extra to receive maternity |
| health coverage for COBRA participants is usually | | | | coverage where on most group plans maternity |
| more expensive than health coverage for active | | | | coverage is included. If having maternity is a necessity |
| employees, since usually the employer pays a part of | | | | then be sure and compare the rates offered to you |
| the premium for active employees while COBRA | | | | by COBRA with the rates offered from an individual |
| participants generally pay the entire premium | | | | plan with maternity coverage to get a true apples to |
| themselves. It is ordinarily less expensive, though, than | | | | apples comparison. |
| individual health coverage. | | | | |