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Posted on February 7, 2009 by Jennifer Hrycyk | Posted under Finance
Important Components of COBRA Health Insurance
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COBRAinsurance was enacted into a law to protect you from losing yourhealthcare in scenarios such as getting fired or laid off. Officiallyknown as the Consolidation Omnibus Budget Reconciliation Act, it isdesigned to provide medical insurance coverage for employees and theirfamilies even after they’ve severed ties with their employer. Peoplemust also understand that COBRA is a law, not an insurance package. BeforeCOBRA medical insurance was enacted to cover medical needs ofterminated employees, the group health plans of terminated workers andthose who changed employers were immediately cancelled. With the adventof COBRA insurance, employees who have been fired or laid off willreceive 18 months of medical coverage of the same health insurancepolicies their employers gave them. However, the benefits of COBRA medical insurance are available only as a group plan and not as individual health coverage.You need to be a part of a health plan group of 20 or more employeesfor you to be eligible to apply for COBRA medical insurance policies. The Price of COBRA Health Insurance Theprice of a COBRA policy is also significantly higher than the totalprice of the medical insurance policy bought by your employer. Thetotal cost of a COBRA insurancepackage is the total amount of your group healthcare plan plus 2%administrative fees. COBRA is more expensive than other group plans,but also provides peace of mind knowing that your family or individualhealth coverage plan is extended to cover you or your family in case ofemergencies or severe health issues. What makes COBRA uniquefrom other forms of medical and health insurance plans is that COBRAwill continue to cover any pre-existing medical conditions that wereapproved and covered by your original health plan. If you happen to beafflicted with a medical condition, COBRA will cover these conditions.Other health insurance providers may not cover pre-existing conditions,potentially leaving major conditions to go untreated. Why COBRA is a Wise Choice Thereare many reasons why applying for COBRA is a wise decision. Apart fromthe fact that you are medically insured and covered for a period of 18months after leaving your job, you can maintain all the benefits youonce received from the same health plan insurer you had before you leftyour job. As mentioned before, COBRA covers any pre-existing or recentmedical problems, which may not be the case with other health insurancecompanies. If you lose your job and rely heavily on your healthinsurance plan for sharing the cost of expensive medications, applyingfor a COBRA policy is an excellent choice. COBRA covers the cost ofprescription drugs, as well as other services such as maternitybenefits and accident insurance. Since many individuals cannotafford the COBRA option offered by their employers, there are COBRAalternatives that are designed for people who are in good health andwith no pre-existing medical condition and do not need to takeexpensive medication. These alternatives come in the form of individualand family health plans. While COBRA provides an opportunity forindividuals to retain health care insurance, individual health coverageplans are much more reasonable as it pertains to cost. The bestthing you can do is to research your health insurance coverage optionsbefore you decide on the best health plan. It is important to make awise decision since this health plan may be with you for a while! About The Author: Jennifer Hrycyk is the marketing manager of TheHealthQuote.com, a leader in providing quotes for family and individual health coverage. She has years of experience regarding the specifics of cobra insurance. Visit TheHealthQuote.com to compare quotes on cobra health insurance coverage. |
Tags: INDIVIDUAL HEALTH COVERAGE, COBRA INSURANCE, COBRA HEALTH INSURANCE COVERAGE
