COBRA - Health Insurance Definition
The Consolidated Omnibus Budget
Reconciliation Act was passed in 1986. Basically,
the law requires that an insurance company that
currently provides coverage for an individual must continue to offer coverage. For example,
if you are employed by a company that offers group
insurance, insurance will still be offered to
you if you leave the company for any reason. Whether
you are fired, quit or even if the company dissolves,
you have the option to continue carrying that
insurance.
You must note that there are some exceptions
and that it’s not all good news. Some jobs
aren’t covered, including most federal positions.
You’ll also probably pay a higher premium
if you carry COBRA insurance. That’s because
your employer likely paid part of your premium
under your employee insurance plan and you’re
now picking up the entire tab on your own.
There’s little doubt that COBRA insurance
is a good option if you’ll be waiting a
short period of time for your next employer-based
insurance to kick in. With some pre-existing
conditions, changing insurance could be more
expensive than paying the higher premiums of CABRA.
Talk to your insurance representative at your
work before you make a decision or find a trustworthy
broker who
can help you make the right decision. |
