How To Guide For: Understanding What COBRA Insurance Is --- Does It Still Exist

The Consolidated Omnibus Budget Reconciliation Act of 1985 (or COBRA) is a law passed by the U.S. Congress on a reconciliation basis and signed by President Ronald Reagan that mandates an insurance program which gives some employees the ability to continue health insurance coverage after leaving employment. To be eligible for COBRA coverage you must have been enrolled in your employer's health plan when you worked and the health plan must continue to be in effect for active employees. COBRA continuation coverage is available upon the occurrence of a qualifying event that would, except for the COBRA continuation coverage, cause an individual to lose his or her health care coverage. Examples of Qualifying Events for the covered employees if they cause the covered employee to lose coverage would be: termination of the employee's employment for any reason other than gross misconduct; or reduction in the number of hours of employment. The following are Qualifying Events for the spouse and dependent child of a covered employee if they cause the spouse or dependent child to lose coverage: termination of the covered employee's employment for any reason other than gross misconduct; reduction in the hours worked by the covered employee; covered employee becomes entitled to Medicare; divorce or legal separation of the spouse from the covered employee; or death of the covered employee. Group health plans must provide covered employees and their families with certain notices explaining their COBRA rights. Your COBRA rights must be described in the plan's Summary Plan Description, which you should receive within 90 days after you first become a participant in the plan. Group health plans must give each employee and spouse who becomes covered under the plan a general notice describing COBRA rights, also provided within the first 90 days of coverage. Under Cobra if you elect continuation coverage the coverage you are given must be identical to the coverage currently available under the plan to similarly situated active employees and their families (generally, this is the same coverage that you had immediately before the qualifying event). You will also be entitled, while receiving continuation coverage, to the same benefits, choices, and services that a similarly situated participant or beneficiary is currently receiving under the plan, such as the right during open enrollment season to choose among available coverage options. You will also be subject to the same rules and limits that would apply to a similarly situated participant or beneficiary, such as co-payment requirements, deductibles, and coverage limits. The plan's rules for filing benefit claims and appealing any claims denials also apply. Any change made to the plan's terms that apply to similarly situated active employees and their families will also apply to qualified beneficiaries receiving COBRA continuation coverage. COBRA requires that continuation coverage extend from the date of the qualifying event for a limited period of 18 or 36 months. The length of time depends on the type of qualifying event that gave rise to the COBRA rights. So does COBRA still exist yes it does. To get a more in depth understanding of COBRA, how it works, who qualifies and so much more click the pictures below to read the articles.