What is COBRA health insurance?
COBRA is an acronym that stands for Consolidated Omnibus Budget Reconciliation Act(COBRA). COBRA insurance is the ability to continue your health insurance coverage through your previous employer. While you can continue your coverage and plan, you will be required to pay 100% of your health insurance premium.
What does COBRA stand for?
It may seem misleading that while you are able to stay on your employers health insurance plan, you are required to pay 100% of the cost. COBRA is simply an act that states you cannot be left uninsured following your change in employment. COBRA officially stands for: Consolidated Omnibus Budget Reconciliation Act.
How long can I stay on COBRA?
Through the COBRA federal law passed in 1985, if you experience a loss of coverage, you may be entitled to the opportunity to stay on your previous health insurance plan for up to 18 months, and in some instances, 36 months.
Advantages of COBRA Health Insurance
The circumstances that brought COBRA health coverage to your choices might not be advantageous, but there are some advantages to the COBRA act. If you are required to purchase an individual health insurance policy, your plan options include many private health plans which can cost significantly less for similar coverage. You will also have the opportunity to review your health coverage and find options that save money on your prescription expenses.
Eligibility for COBRA health coverage
COBRA health insurance coverage has a few requirements. First, your employer must have offered health insurance coverage and you be enrolled in those health insurance benefits. Second, you must have been enrolled in health insurance coverage through your employer in order to have the opportunity to stay on that health plan coverage. Third, generally you must to not have been terminated by your employer in order to be eligible for continuation coverage.