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COBRA Insurance

Posted on: January 27th, 2012 by Cobra Insurance Guide

COBRA Insurance and the NFL – COBRA Insurance Benefits Employees in All SectorsCOBRA insurance, short for the Consolidated Omnibus Budget Reconciliation Act, is a piece of legislation that was passed in 1986 to ensure that families would suddenly go without health insurance when someone lost their job, or even voluntarily left their job. Many people mistake COBRA as a particular type of insurance plan, but in actuality it is the name of the law that lets you keep your current health insurance plan. So what is COBRA insurance exactly? Well quite simply, it lets you continue to use your employer’s group health insurance plan for up to 18 months after you lose or quit your job. It extends to spouses and dependents. Essentially what this means is that the COBRA Insurance law lets you keep the exact same health insurance coverage for you and anyone that was on your plan.

So what’s the catch? Well under the COBRA insurance law you are responsible for paying the entire premium yourself. For most folks that means that COBRA insurance will cost at least double what they are currently paying. Why? Because most employers subsidize the cost of health insurance and pay up to 80% of the cost for their employees. Under COBRA insurance you will be responsible for paying that entire premium, which means both what you paid and what your employer paid. Additionally there is a 2% administration cost for federal COBRA insurance.

Furthermore, not everyone is eligible for COBRA insurance or will find that COBRA is the best health care option for them. There are three basic requirements for COBRA insurance that must be fulfilled in order to qualify. They include the type of group health insurance plan your employer had, how you lost your insurance, and who is eligible. Many people also are unaware that COBRA insurance coverage can also extend to spouses who are getting divorced and therefore losing coverage or children who no longer qualifying once they turn 26.

COBRA insurance can be a great option for many people, especially anyone with a preexisting health condition, but it isn’t for everyone. In a recent study, they determined that healthy individuals and families actually paid almost double what they needed to with COBRA insurance as opposed to a privately priced plan. No matter what your condition, age, or financial status, it is always wise to get quotes for alternative health insurance options so you can find the best plan for you.

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