{"id":96590,"date":"2023-02-16T10:28:08","date_gmt":"2023-02-16T10:28:08","guid":{"rendered":"https:\/\/businessyield.com\/?p=96590"},"modified":"2023-02-16T10:28:12","modified_gmt":"2023-02-16T10:28:12","slug":"what-is-cobra","status":"publish","type":"post","link":"https:\/\/businessyield.com\/insurance\/what-is-cobra\/","title":{"rendered":"WHAT IS COBRA: Definition, How It Works & Benefit","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n
The Consolidated Omnibus Budget Reconciliation Act (COBRA) permits employees to continue receiving the advantages of health insurance coverage for themselves and any qualifying dependents even after losing their job or having their work hours reduced.<\/p>\n\n\n\n
COBRA insurance may provide you with temporary health coverage if you lose your job or are otherwise eligible.<\/p>\n\n\n\n
When an employee loses their job or has their work hours reduced, they have the option to continue their health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act. If an employer has 20 or more full-time equivalent employees, most states mandate that they offer COBRA coverage. The length of COBRA’s health insurance coverage varies depending on the situation and is either 18 or 36 months.<\/p>\n\n\n\n
The cost of COBRA insurance is usually high because the newly unemployed person is responsible for covering the entire premium (employers typically pay a sizable portion of employee healthcare premiums). You can continue to use your employee health plan despite no longer being employed by your former employer. <\/p>\n\n\n\n
Individuals may continue on their health plans for a brief period in certain circumstances, such as job loss, etc. But not everybody qualifies for these advantages.<\/p>\n\n\n\n
In the US, large employers, those with 50 or more full-time workers, are required to provide health insurance to their qualified employees. They can do this by paying a portion of the insurance premiums. <\/p>\n\n\n\n
When an employee is no longer eligible for the employer’s health insurance benefits, which can happen for several reasons, the employer may stop paying the employee’s insurance premium contributions. <\/p>\n\n\n\n
Then, under COBRA, the employee and their dependents can keep their insurance coverage for a predetermined period if they are willing to pay for it themselves. <\/p>\n\n\n\n
The option to continue their health insurance at group rates under this insurance is available to former spouses, children under the age of 18, and spouses of former employees. If they choose not to, their insurance company will cancel their coverage. However, because the employer won’t be covering the full cost of the premiums, these people will probably have to pay more for health insurance through COBRA than they did when they were employees.<\/p>\n\n\n\n
To put it simply, “having COBRA insurance” means that you and your covered family members will continue to use the group insurance offered by your employer after a qualifying life event. <\/p>\n\n\n\n
The term “qualifying life events” refers to alterations in your situation that might make you or a member of your family ineligible for protection under a group health insurance plan offered by your employer. <\/p>\n\n\n\n