COBRA Health Insurance:
COBRA is a law that allows employees (not terminated for gross misconduct) and their immediate family to continue their group health coverage for up to 18 months after termination.
Disadvantages of COBRA:
- You only have 60 days to qualify for private health insurance before enrolling in the COBRA plan (as a last resort)
- Your premiums are no longer subsidized by your employers
- You must have group insurance
- Only the employee, spouse and dependents are eligible
- Companies with fewer than 20 employees may be able to claim an exemption
- Coverage ends after 18 months or if your employer ends his group plan
- Medical expenses incured before you enrolled will not be covered.
Advantages of COBRA:
- If you die, divorce or become legally seperated, your spouse and dependents are eligible for 36 months
- If you are terminated or have an hour reduction (usually to part time status without benefits) you can continue coverage for 18 months
When should you sign up for COBRA?
- If you are terminated with a serious pre-existing condition
- If you or your spouse are pregnant
- If you are on expensive long term medications
Note: Under HIPPA, you can continue coverage even with a pre-existing condition if your COBRA plan has run out.
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