What Is Cobra Insurance?

Congress passed the landmark Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit provisions in 1986. The law amends the Employee Retirement Income Security Act (ERISA), the Internal Revenue Code and the Public Health Service Act to provide continuation of group health coverage that otherwise would be terminated.

If you change jobs your previous employer must allow you to continue your group health insurance for up to 18 months. Of course, you have to pay the premiums yourself, not your previous employer. The advantage is that you don’t have to find…

COBRA will be the exact same coverage that you previously had at your job. It is required to be offered to you for 18 months even after you lost your job as long as your company has at least 20 full time workers.

COBRA insurance is based on a law that allows certain employees and their dependents to buy continued health insurance coverage through the employer’s health plan when the employees stop working. In order to obtain COBRA, you need to have been a member of the employer’s group plan when you were last employed. At the time of your departure or soon after, the employer is required to offer you in writing the option of selecting COBRA health insurance. You will have 60 days to make the selection from the time the written option is sent or given to you.

Although COBRA insurance is a very common term, it is NOT insurance – It is an Act. In 1986, Congress passed the COBRA Act that contains provisions giving certain former employees, retirees, spouses and dependent children the right to temporarily continue their current health coverage at group rates. This coverage, however, is only available in specific instances. If your employer drops group coverage entirely, unfortunately, COBRA coverage will not be available. Read More.

Did you know that there are alternatives to COBRA Insurance benefits? Short term health insurance can cost as little as 1/3 the cost of COBRA Insurance. If your healthy, you and your family may be eligible. Get More Information and an Online Quote.

Health insurance coverage is a concern for many people, not the least of which are people who are recently unemployed. If you had insurance at your old job, you may be able to continue the health insurance plan you had with your employer under COBRA or choose a short term plan that saves you a lot of money.