COBRA is an abbreviation of the Consolidated Omnibus Budget Reconciliation Act. According to Federal Government law, large employers with more than 50 employees need to cover some part of their employees’ medical insurance expenses. As per COBRA Medical Insurance, employees and their dependents can enjoy continued medical coverage in a qualified event when an employee loses this job.
The health insurance coverage from COBRA is applicable in some situations known as qualifying events. Here are eligibility criteria:
For Employee: He can be eligible for this specific insurance when employed and get medical insurance coverage under the employee’s group health plan. If he has lost his job or quit it or got fired/laid off, or experienced reduced working hours at some point of his work life, his employer won’t require to offer him medical insurance coverage.
For Dependent: If you are dependent on an employee who has been qualified for COBRA as per qualifying events, you are eligible for getting Cobra continued coverage. In case you file a divorce or legal separation for a qualified employee, then you are eligible. If you are a spouse of an employee who died and was qualified for coverage, you are also qualified. Still not sure about eligibility? You can connect with your employer or insurance provider to get a clear picture.
How Does it Work?
Once you lost your job and qualified for continued coverage, you will have sixty days to decide whether you want to avail this deal or not. If you sign up for ongoing coverage, you will pay the premium and get the same benefits that other group health plans would receive.
In case you decide to continue coverage under COBRA, then it will begin once your employer’s coverage period comes to an end. You can visit the same doctors as other employees of that company and follow the same group health plan guidelines.
This continued coverage will end after 18 or 36 months, and it is all based on qualifying events under which you become eligible. When you stop paying premiums or fees related to coverage, the insurance provider will terminate this coverage. Another event where this coverage ceases is when you get a new job and get coverage from a new employer’s group health insurance plan.
When you have questions and concerns about COBRA medical insurance, you can reach out to either your employer or insurance providers. These parties can address all questions and concerns diligently.