With double digit unemployment rates and an economy that is not showing signs of recovery any time soon, many laid off American workers are dealing with not only the loss of income, but the loss of health insurance coverage. For anyone, but especially those with a family, this can be quite devastating. The good news is that the government requires that employers offer continuing coverage through the COBRA insurance plan.
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.
Who Qualifies?
Simply put, COBRA allows separated employees to purchase supplemental insurance coverage that spans the gap between jobs. The provider of the plan is the individual’s most recent employer. The benefit is provided to anyone who has been laid off, terminated for a reason not including gross misconduct, or had their status reduced to part-time, making him or her ineligible for health insurance coverage. Dependants that were included on the employer’s policy are also eligible.
If you lost your job between September 2008 and February 2009, you can still take advantage of COBRA health insurance benefits. The American Recovery and Reinvestment Act (ARRA) allows a further extension to anyone losing employment during this time period and who is still unemployed.
Paying for COBRA Insurance
After you are no longer employed, you will have to foot the bill for health insurance premiums. The former employer is still the administrator of the plan, but they are not required to pay any part of the monthly premium. You should be aware that the cost may still be far less than if you purchased an individual plan. The federal government also offers subsidies, up to 65%, to anyone who is unable to afford the entire insurance premium.
What to Do When You Lose Your 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.
You should also be aware that there are time limits in place. There is a 60-day period in which the separated employee can decide whether or not to receive continued health insurance coverage. After that, you will have 45 days to pay the initial premium.
There are also specific regulations from the health insurance provider as to how and when claims for extended coverage are filed. The insurance company may deny benefits. You are allowed to appeal the denial within 60 days. Because the health insurance provider often carries numerous plan stipulations, you may want to obtain assistance when dealing with the company.
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.
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.
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