With layoffs, buyouts, and other financial problems facing companies today, it may be hard to keep a good health insurance policy. But the government has set up a few programmes that, if you act quickly enough, will let you keep the same coverage you had before your situation changed. Here are some things you need to know about the COBRA programme, which could help you keep the same health insurance coverage you had before.
The Consolidated Omnibus Budget Reconciliation Act, or COBRA, lets you keep the same insurance coverage for up to 18 months. For people with dependents, this time period may be extended for even longer in some cases.
Events that count
People must meet certain requirements to be able to take part in this programme. The good news is that COBRA's rules are pretty easy to meet. If you used to have a job but don't have one now, you may be eligible, even if you were fired or laid off. The only time this isn't true is if you were very bad at your job or did something wrong that got you fired.
If an employee gets divorced or dies, those are two other things that could make them eligible. Sometimes, the employee may also leave the job, retire, or sign up for Medicare. When this happens, coverage can be extended for up to 36 months. But coverage will not be given if the company goes out of business. But if that happens, you might still be able to get health insurance through HIPAA.
The time to apply is limited
After an event that makes you eligible, you need to act quickly because you don't have a lot of time to sign up for the COBRA programme. You must tell the insurance plan administrator (your employer) within 30 days of the event that you want to keep the coverage. For your own records, you should do it in writing. After you tell them, they will send you a letter within 14 days. You then have up to 60 days to decide if you want the COBRA coverage.
The Charges
Even though you can keep the coverage you had before the event, there is a big change. Before, your employer paid a portion of the premiums. Now, it's up to you to pay the full price. So, you might be surprised by how much it costs, because it won't be cheap. Group insurance is usually much cheaper, so you might be surprised at how much your employer paid.
What Is Covered
One of the best things about COBRA health insurance is that you probably won't have to pay for any pre-existing conditions since you were already covered. This means that your coverage keeps going, hopefully without any problems, and you can keep doing what you were doing before.
