In 1986, The Consolidation Omnibus Budget Reconciliation Act (COBRA) was made into a law giving employees the chance to enjoy their company-sponsored health benefits even after they have severed ties with that company.

Getting a health insurance policy for yourself does not come cheap. It is expensive, not to mention tedious. You will have to wait for the application process to finish and go through the first step all over again in terms of medical coverage, preexisting conditions and all that. COBRA ensures that even after leaving your job, you can still take advantage of the group policy even when you are not connected in any way with the company that bought the original policy.

The premium of the group policy that you will pay will be slightly higher than what you used to pay when you were still connected with your company but getting a new insurance outside of the group policy is still more expensive. So while retaining your health insurance and paying for the share that your former company used to shoulder makes a sizeable dent to your pocket, it is still a lot cheaper compared to getting a new health insurance on your own.

Perhaps one of the most important factors that make COBRA really useful is that it allows you to continue your medical history with the insurer. Any preexisting conditions that have already been allowed will continue to be covered. Any condition that you have just been afflicted with will be covered. If you file or apply for a new insurance policy, these will not hold true. All those conditions will be treated as preexisting conditions and as such, will not be covered by your new insurance policy.

Before completely leaving your company or employer, make sure that you have all the data that you will need to continue your health insurance by way of COBRA. Ask the personnel head and any other people who are privy to the details of the group policy for the things that you need to know in order to take full advantage of the chance offered by a COBRA insurance. There will definitely be changes and adjustments to the policy and usually, it is advisable to comply with all the necessary requisites and complete all the paperwork that need to be done in order for your COBRA insurance to be updated.

Usually, company-sponsored medical and other insurance packages are paid annually and are therefore effective for one full year. In normal circumstances, the alteration of the policy is not allowed and considered legit. Any changes or modifications to the insurance policy may only be implemented for life-changing events such as an employment termination, marriage, death of a spouse, giving birth or a divorce.

Because an employment termination is considered a legal ground for modifying an insurance policy within its enrollment period, you can make your desired changes to your policy as soon as possible. You can either upgrade or downgrade your insurance package, add or remove dependents and many others.

COBRA insurance gives you that assurance that even without a regular employment or connection to the company that originally purchased the health insurance, you can still enjoy its benefits and continue to do so for as long as you like by paying its premiums on your own and assuming the share that used to be paid by the company. COBRA insurance sees to it that you are well-protected and covered by an insurance policy that suits you best even after leaving your job.

In today’s economy, there is very little job security. Unfortunately, one of the secondary effects of losing your job is that you lose your health coverage as well. Thankfully there are programs in place that can extend your health coverage for up to 18 months following a termination, career change, or even retirement.

COBRA insurance was enacted into a law to protect you from losing your healthcare in scenarios such as getting fired or laid off. Officially known as the Consolidation Omnibus Budget Reconciliation Act, it is designed to provide medical insurance coverage for employees and their families even after they’ve severed ties with their employer. People must also understand that COBRA is a law, not an insurance package.

Before COBRA medical insurance was enacted to cover medical needs of terminated employees, the group health plans of terminated workers and those who changed employers were immediately cancelled. With the advent of COBRA insurance, employees who have been fired or laid off will receive 18 months of medical coverage of the same health insurance policies their employers gave them.

However, the benefits of COBRA medical insurance are available only as a group plan and not as individual health coverage. You need to be a part of a health plan group of 20 or more employees for you to be eligible to apply for COBRA medical insurance policies.

The Price of COBRA Health Insurance

The price of a COBRA policy is also significantly higher than the total price of the medical insurance policy bought by your employer. The total cost of a COBRA insurance package is the total amount of your group healthcare plan plus 2% administrative fees. COBRA is more expensive than other group plans, but also provides peace of mind knowing that your family or individual health coverage plan is extended to cover you or your family in case of emergencies or severe health issues.

What makes COBRA unique from other forms of medical and health insurance plans is that COBRA will continue to cover any pre-existing medical conditions that were approved and covered by your original health plan. If you happen to be afflicted with a medical condition, COBRA will cover these conditions. Other health insurance providers may not cover pre-existing conditions, potentially leaving major conditions to go untreated.

Why COBRA is a Wise Choice

There are many reasons why applying for COBRA is a wise decision. Apart from the fact that you are medically insured and covered for a period of 18 months after leaving your job, you can maintain all the benefits you once received from the same health plan insurer you had before you left your job. As mentioned before, COBRA covers any pre-existing or recent medical problems, which may not be the case with other health insurance companies.

If you lose your job and rely heavily on your health insurance plan for sharing the cost of expensive medications, applying for a COBRA policy is an excellent choice. COBRA covers the cost of prescription drugs, as well as other services such as maternity benefits and accident insurance.

Since many individuals cannot afford the COBRA option offered by their employers, there are COBRA alternatives that are designed for people who are in good health and with no pre-existing medical condition and do not need to take expensive medication. These alternatives come in the form of individual and family health plans.

While COBRA provides an opportunity for individuals to retain health care insurance, individual health coverage plans are much more reasonable as it pertains to cost.

The best thing you can do is to research your health insurance coverage options before you decide on the best health plan. It is important to make a wise decision since this health plan may be with you for a while!

Does COBRA require the plan to grant dependant-only insurance?

If I read the law right, the ruling to take COBRA is made on a per-beneficiary argument, so even if the employer does not offer dependant-only insurance, you can choose to insure simply the dependant if you take COBRA. Is that right, and if so, how do they even…

can anyone suggest robustness insurance covering me (32 yr), wife (27 yr), my father (69 yr), mother (64 yr)?

any medical insurances covering both prehospitalization and post hospitalization charges and how long is the lag time for me to actually find the insurance once i insure my family First bad, ask yourself what needs do you hold?…

Can I buy a energy insurance policy for my 77 year weak mother?

There’s a high probability that companies will not want to insure a 77 year hoary woman. Why? She is so close to the life expectancy. There are a few companies that will insure her, but it will cost alot of money. You may be…

Can I buy a Life Insurance Policy on someone I don’t even know?

Seriously. For instance, If I took out a policy on Bob Barker, I could expect a payout in just about three to five years. Can I insure someone without their education or permission? (note: it isn’t as if I would do anything to get…

Can I insure fence on a deserted block within australia?

I have bought a untenanted block that has houses adjectives round it and over 200m of fences, they hold been up for @ 2 previous owners, i hold no buildings on the property, am I able to insure basically fences?? Yes, but it’s usually not cost important…

can i insure tools we remerchandise lowes stores and have a lot?

of tools that we leave at the store during the remerch. sometimes people take other peoples boxes. is there a company that would insure my tools they are worth about 2,000.00 Contractor’s tools are insurable, but you can’t leave them around just anywhere. They have to…

Can I inventory someone underneath my insurance lacking L’s?

What’s an L? License number? No, you can’t insure a driver who doesnt’ enjoy a license. You involve their license number AND date of birth to catalogue them.

Can i put insurance on tools?

my dad has over $35.000 or more within tools for work that he has invested within for many years. can he insure them? and if yes where on earth? He uses them for work, so they cannot be added on a homeowner policy. If he does not need a business insurance policy…

Can just anyone take out life insurance on anyone else without telling that person.?

Can they make them self the beneficiary and claim the money when the person dies. To insure someone else’s life, you must have an “insurable interest” in that person. In other words, their death must affect you financially, such as a spouse, child, or…

Can you insure a vehicle beside a suspended license?

I have a financed vehicle to be precise currently uninsured, but my license was only just suspended. I’m not sure, but I’m guessing the answer is yes. In my state (Missouri) you don’t have to own a license to get insurance. Most insurance companies will be more than jubilant…

Can you return with insurance for a home you are not living contained by?

You don’t have to live contained by it but you have to own it or lease it. Yes Provided you are on title and vested within the property, yes. Perhaps, but some carriers will not insure an entirely UN-occupied residence…since the risk of…

Car insurance?

I have hear that sports car insurance can be a little cheaper if its a 4 door. Is this true? I own a son getting ready to drive and I be wondering. Some 4-door cars can be cheaper to insure, but usually only if you are carrying physical blight coverage on the car. It have to…

Car Insurancewhat to buy, how to buy.?

What websites can I go to to find out what to buy , where on earth to buy, what companies to avoid, the Best car insurance companies, etc. ? What companies do other those recommend for single, middle aged male, next to an excellent FICO score, who desires to insure…

Cattery Insurance?

I want to open a cattery out of my home and eventually move it out to the family sheep farm. Home owner’s insurance won’t cover this exposure. What company will insure a start up cattery run from my home? I HAVE to have it, but no one will enlighten me where to GET it! Thanks ahead…

Chicken Wings?

dude seriously stop doing stupid questions contained by the wrong catagory Hmmm. You want to insure your chicken wings? Your insured chicken wing got eat and you want to know how to submit a claim? Can’t think of too plentiful ways chicken wings relate to insurance. Perhaps you looked-for to ask this question contained by…

Cobra insurance too lofty, any option?

I have pre-existing conditions where on earth Blue +, and the other big companies wont insure me. Any help is appreciated. Sorry, but if you are uninsurable your solitary decent opportunity is COBRA or getting another job that have benefits. There are some guaranteed issue indemnity plans but their benefits are…

Commercial property Insurance?

I recently purchased a 4th house but my home insurance denies further coverage and tell me that I can only insure up to 4 houses and must switch to commercial insurance. Is this everyday proceedure? Is there any commercial insurance companies that are well-mannered and you recommend? Are they as good as the non…

Crazy Q. I own 2 cars , but one and only drive one at a time , is at hand anway that I could insure 2 for price of one?

To me that makes sense. I am single placing one vehicle at risk at one time and it would be impossible to place both vehicles at risk…

Did you know ISI-Insurance Specialist, Inc. will not insure you if you do not congregate their counterbalance standards?

Isn’t it amazing that in todays world of ancestors to be treated equal, that an insurance company will not insure you if you are not in the immensity range? Even though I enjoy great blood pressure etc. For the…

Do any employer health insurance programs let you insure your girlfriend even if you’re not married?

Yes, there are a few. However, you usually have to be living together with joint savings/checking accounts, just like you were married.

Do ebay shoppers enjoy any impression on how the shipping industry operate?

Why do idiots ask for a replacement or refund when they own not purchased insurance? “Thing just don’t dissapear” They say aloud. Stuff is broken, stolen and lost every day. Wake up idiots and insure you purchases. No, they don’t. And they don’t apprehend how…

Do home insurers insure your home when you hold a 3/4 pit bull or a trampoline?

What happens if somebody get hurt and you did not notify the insurance company if you had one of these conditions? You bring sued, and get to income money out of your pocket. Get rid of the dog. Find coverage for…

Do i capture liability cover for general public working contained by my garden or do i want insurance?

I have those working on clearing my garden . Am i liable if they have an catastrophe or does my insurance cover it ? Are they suppose to insure themselves? I just dont want to obtain sued thanks Rob

Do I have to be an owner of co-owner of the second car to add it to my existing policy?

Realistacally you need to have an insurable interest before you are suppose to be able to insure a vehicle. Doesn’t
mean the policy won’t get written. If people weren’t the owners or didn’t have an insurable interest…

Do insurance companies enjoy insurance? Who insures them? Themselves?

No one else insure the insurances companies., unless the insurance company is small and is backed up by a bigger one. The key insurance companies use a system of “premiums” and “discounts” to sort out the customers that will cost them money, and ones that will earn them…

Do insurance companies insure for “inside” stealing or damages?

For example, a wife insures her jewels. Her disgruntled husband steals the rings and runs off beside them. Would the insurance company cover such instances?

Do insurance companies insure themselves?

My wife and I were wondering this this morning. If an insurance department is broken in to/has a fire/etc, do they cover themselves? Almost adjectives very roomy companies, including insurance companies, self insure themselves for things like this. Smaller businesses similar to small agents, for example, would buy an insurance policy. But big…

Do insurance companies know if you enjoy be to see a doctor already/?

If you wanted to grasp health insurance, but own already been to see a doctor almost a problem, would the insuarnce company be able to find out? Cos they read aloud if it is a “pre-condition” they wont insure. Yet, if I didnt go…

Do insurance companies own to enjoy fluid assets for EVERY dollar they insure?

Like how casinos have to hold cash on mitt for every chip in play on here floor…even though 100% of customers would never cash out at matching time, nor would every insured driver get surrounded by an accident on like peas in a pod…

Do you hold 4 or more years no claims ?

do you know that you could get even cheaper saloon insurance ? Calm down dear Yes, I do. No and yes Lol sorry I don’t I keep have crashes all the time. That is why you should insure near esure. Why should you pay for my mistakes….

do you know an insurance co. who will insure worthless property?

Since there will not be anybody on premises most of the time, you are going to enjoy a harder time getting a standard insurer to insure the property. Since nobody is there to prevent burglary, burglary, fires or notice if something is amiss or do preventative…

More insurance questions please visit : InsuranceFreeFAQ.com