Are you one of the many Americans who have been laid off in recent months? Are you concerned about no longer having health insurance benefits for you and your family in addition to the loss of income? If so, you will want to know more about the COBRA Insurance plan provided by the federal government.
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It is always best to take advantage of this health insurance benefit if it is available. A lapse in coverage may result in difficulties being added to a new plan in the future. In addition, there is no way to predict the occurrence of accidents or illness that might debilitate you or a dependant.
COBRA Qualifications
The COBRA insurance extension provides supplemental health insurance that fills the gap between coverage due to unemployment. Your last employer is required to provide this option. You will qualify if you have had hours reduced and become a part-time employee ineligible for the employer's health insurance benefit, laid off, or terminated for any reason other than gross misconduct. Insurance coverage extends to all dependants who were previously on your policy.
If you have been without a job for some time, the American Recovery and Reinvestment Act (ARRA) provides extended COBRA benefits to anyone who lost employment in the period between September 2008 and February 2009. If you are still without employment now, you could now be eligible to receive health insurance with your last employer's plan.
How Much Will It Cost?
After separation from your employer, the company is required to offer COBRA benefits but they do not have to pay any portion of the monthly insurance premium - that is the responsibility of the former employee. Although you will pay more than your contribution while employed, it is still far less than individual plan coverage. Recently the federal government announced a 65% subsidy for those unable to afford the monthly premium under COBRA.
What Happens After Loss of a Job
Your former employer is responsible for reporting COBRA eligibility of separated employees. Eligibility is determined by a number of factors, including the size of the company and what events occurred to cause the loss of the job. There are many rules and regulations so it may be beneficial to use the services of a company that can help you in the case of determined ineligibility.
The employee has 60 days to decide whether he or she wants to take advantage of COBRA benefits. If the former employee does elect to continue health insurance coverage, there is a 45 day period in which the first premium must be paid.
In addition to federal regulations, each health insurance provider will have its own rules and requirements regarding how claims are filed. They also have the option of ruling you ineligible for plan benefits. If you are denied COBRA benefits, you have the option of protesting this assessment within 60 days. Of course dealing with an insurance company is never uncomplicated so this may be another instance when assistance is required
There are many rules, regulations, and stipulations that apply to COBRA insurance extension benefits but there are also resources available to make the process easier. Look into the options today and don't be left without health insurance.
About the Author
Looking to find more information on the Cobra Extension? Then visit www.cobraextension.org to find the best advice on Cobra Insurance Plan to help you.
by: Tim F Dalton - Total views: 4 - Date: Sun, 7 Feb 2010
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