What You Need to Do About Cobra Insurance Extension
12:07 AM
Are you one of the many Americans who have been laid off in recent months? Are you concerned about no longer having health insurance benefits for you and your family in addition to the loss of income? If so, you will want to know more about the COBRA Insurance plan provided by the federal government.
Too often, laid off or terminated employees feel that they do not need to opt for COBRA benefits. This could be a big mistake. For one thing, anyone who shows a lapse in health insurance coverage could have a difficult time being added to a new policy in the future. For another, it is impossible to predict when illness or an accident may affect you or your family members.
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 have been without a job for some time, the American Recovery and Reinvestment Act (ARRA) provides extended COBRA benefits to anyone who lost employment in the period between September 2008 and February 2009. If you are still without employment now, you could now be eligible to receive health insurance with your last employer's plan.
Paying for COBRA Insurance
After separation from your employer, the company is required to offer COBRA benefits but they do not have to pay any portion of the monthly insurance premium - that is the responsibility of the former employee. Although you will pay more than your contribution while employed, it is still far less than individual plan coverage. Recently the federal government announced a 65% subsidy for those unable to afford the monthly premium under COBRA.
What to Do When You Lose Your Job
It is your employer's responsibility to report the separation and eligibility for COBRA benefits. There are various regulations that apply to determine who is eligible, what companies are required to offer COBRA, and what events qualify for the continued health insurance benefit. If you feel that you should be able to continue to receive coverage, you may want to consult with a company that can help you sort out the details.
Time is of the essence when it comes to the COBRA insurance extension. The employer has 14 days to report separation. The former employee has 60 days to make a decision about receiving the benefit and then another 45 days to pay the first premium. You must meet these timelines in order to receive insurance.
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.
Too often, laid off or terminated employees feel that they do not need to opt for COBRA benefits. This could be a big mistake. For one thing, anyone who shows a lapse in health insurance coverage could have a difficult time being added to a new policy in the future. For another, it is impossible to predict when illness or an accident may affect you or your family members.
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 have been without a job for some time, the American Recovery and Reinvestment Act (ARRA) provides extended COBRA benefits to anyone who lost employment in the period between September 2008 and February 2009. If you are still without employment now, you could now be eligible to receive health insurance with your last employer's plan.
Paying for COBRA Insurance
After separation from your employer, the company is required to offer COBRA benefits but they do not have to pay any portion of the monthly insurance premium - that is the responsibility of the former employee. Although you will pay more than your contribution while employed, it is still far less than individual plan coverage. Recently the federal government announced a 65% subsidy for those unable to afford the monthly premium under COBRA.
What to Do When You Lose Your Job
It is your employer's responsibility to report the separation and eligibility for COBRA benefits. There are various regulations that apply to determine who is eligible, what companies are required to offer COBRA, and what events qualify for the continued health insurance benefit. If you feel that you should be able to continue to receive coverage, you may want to consult with a company that can help you sort out the details.
Time is of the essence when it comes to the COBRA insurance extension. The employer has 14 days to report separation. The former employee has 60 days to make a decision about receiving the benefit and then another 45 days to pay the first premium. You must meet these timelines in order to receive insurance.
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.
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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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