| The Consolidated Omnibus Budget Reconciliation Act | | | | The law mandates that employers notify eligible |
| of 1985, more commonly know as COBRA, is a | | | | former employees of the available option to obtain |
| federal law that guarantees your heath insurance | | | | health insurance through COBRA. Employees would |
| coverage will remain in effect for up to 18 months | | | | also have to specify the price for this coverage. |
| should you be terminated from your job. Most | | | | Employees who are notified of this option have up to |
| companies that provide groups insurance to their | | | | 60 days to agree to COBRA coverage. |
| employees are mandated to abide COBRA. In some | | | | As COBRA essentially increases a terminated |
| circumstances, the coverage period can be extended | | | | employee's health insurance coverage by 18 months, |
| from 18 months to 29 months or even up to 36 | | | | you don't have to be concerned about any changes in |
| months. | | | | your benefits, should you choose COBRA coverage. |
| COBRA Insurance: Who Benefits from It? | | | | Under COBRA, your health insurance coverage will not |
| If you have lost your job and you stand a chance of | | | | change; the only change is that you will be responsible |
| losing your health insurance benefits as a result, you | | | | for paying the monthly premium. If you have your |
| are protected by COBRA. As a stand-by facility, | | | | family covered by your company's group insurance, |
| COBRA can help you get through a tough time. | | | | they will still be covered by COBRA. The only way |
| However, COBRA insurance does not apply to every | | | | that any changes will occur on your coverage is if |
| terminated employee. Employers need to know if the | | | | your former employer makes modifications on the |
| COBRA exclusion applies to their companies and | | | | health insurance plan it is offering to employees. |
| employees. | | | | COBRA Insurance: It's only Temporary |
| If you have been recently terminated, the law allows | | | | COBRA is meant only as a temporary, but a very |
| you to get a health insurance for yourself (and your | | | | important, measure. COBRA ensures that you would |
| family, if you had family coverage while you were | | | | have health insurance for 18 months. However, you will |
| employed) at the group rate even though you are not | | | | no longer have health insurance once the 18 months |
| employed anymore. Coverage is not cheap and you | | | | are up, unless you have not gotten an individual health |
| will have to pay the total cost each month along with a | | | | insurance plan or a group insurance plan from your |
| 2% surcharge. | | | | new employer. |
| If you are terminated, laid off or experience some kind | | | | And, hopefully you would never find yourself in a |
| of change in your employment status, such as | | | | position where you discover for the first time that you |
| reduced working hours, divorce from or death of the | | | | have a severe medical condition, such as cancer, while |
| eligible employee), and you are qualified for COBRA, | | | | you are under COBRA coverage. Should this happen, |
| COBRA will continue to cover you for at least 18 | | | | you would then become "uninsurable" because of a |
| months or until you get a new health insurance plan or | | | | pre-existing condition. |
| a group health insurance plan. | | | | |