Cobra Insurance |
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Cobra Insurance stands for Consolidated Omnibus Budget Reconciliation Act, and is a landmarked health benefit provision that was passed in Congress in the year 1986. This is a law that is an amendment of the Employee Retirement Income Security Act, or ERISA. Using this law allows the group health coverage to continue from the Internal Revenue Code and the Public Heath Service Act.COBRA health care coverage for groups may typically cost more for active employees, although it is less expensive than having individual health insurance premiums. The difference is the premium part that is paid by the person's employer. There are provisions of COBRA health insurance that gives temporary health care coverage at a group rate to a certain group of people. These may be former employees, retirees, spouses and dependant children.
There are certain instances that this coverage is applicable, however:
Hospital Care, either inpatient or outpatient
Doctor's Care
Prescription Coverage
Medical Benefits that can include dental and eye care
Group health care plans that have more than 20 or more employees in it are usually covered by the COBRA law. They apply to those people that are sponsored by both local governments as well as the state, and the private sector as well. This law does not, however, apply to plans that have been sponsored by the federal Government. Many church-related organizations may not be covered, either.
Watched over by ERISA, these group health plans are usually taken care of by the private sector employers. The welfare benefit plans are subject to requirements for many things, such as reporting and disclosure, fiduciary standards and enforcement. ERISA, however, does not enforce the level of benefits that are offer to participants, and they do not keep minimum standards for welfare plans. There are rules and regulations, though, which one must follow to be entitled to these plans benefits.
COBRA Insurance beneficiaries may receive:
Both outpatient care and inpatient care
Doctor care
Surgery and other medical benefits
Prescriptions
Dental and Vision care
The terms of the plan provided medical benefits for the employer's own employees as well as their dependants through the insurance or otherwise. These include a trust, self-funded pay-as-you-go plans, a health maintenance organization, reimbursements of payments made, or any combination of these. This is under the group health plan COBRA.
Cobra Insurance Q & A
Many people may be able to receive COBRA insurance for a lower cost. Terms for this insurance specify no pre-existing health conditions, as well as being in relatively good health. COBRA insurance does not cover those who live in the states of NY, NJ, MA or VT.
Q: Why is my COBRA Insurance premium so expensive?
A: COBRA premiums may be higher because of the extra 5%-15% paid for administration of COBRA, and you are paying for the full medical insurance premium as well.
Q: My insurance is ending soon and I still have not received my COBRA information.
A: If you elect to continue your payments, retroactive coverage will then start. The employer of the COBRA insurance plan has 45 days to get you your information.
Q: How Do I Get COBRA?
A: Any questions you have about your COBRA insurance should be asked of your ex-employer or the plan administrator of the insurance. Remember that you are now responsible for the entire premium amount. COBRA insurance is not an insurance company or provider; they are a law that lets you get the same benefits you did while you were working.
