COBRA… The Good Kind!
Posted in Health Insurance
August 26th, 2008
Should you leave your present job by layoff, firing or resignation and had health insurance as an employee benefit; you may be eligible to continue your coverage. COBRA, short for Consolidated Omnibus Budget Reconciliation Act, is a Federal Law and was enacted in 1985.
Employers with 20 or more employees and offer health plans as a benefit are required to offer continuous medical plan coverage for you and your family for 18 months from the date you leave.
You must notify your employer within 60 days after you leave and here is the expensive part you must pay the entire premium plus a 2% fee to continue your health insurance coverage. You can wait to the 59th day if you think you will find a new job quickly and your new employment will offer a no waiting period on health coverage. If you have a pre-existing condition, sign-up for COBRA immediately continuous coverage is very important to any new health insurance coverage you may be applying for.
If COBRA is not available to you, check and see if you can convert your group policy to an individual or family plan.
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[...] time securing health insurance because they are no longer covered by their employers after their COBRA benefits run out and they may have a few years to go before qualifying for Medicare. However, the [...]