The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, ...
With COBRA insurance, you're on the hook for the whole thing. That means you could be paying average monthly premiums of $569 to continue your individual coverage or $1,595 for family coverage—maybe more!
To be eligible for COBRA coverage, you must have been enrolled in your employer's health plan when you worked and the health plan must continue to be in effect for active employees.
Q3: Which employers are required to offer COBRA coverage? COBRA generally applies to all private-sector group health plans maintained by employers that had at least 20 employees on more than 50 percent of its typical business days in the previous calendar year.
You'll have 60 days to enroll in COBRA — or another health plan — once your benefits end. But keep in mind that delaying enrollment won't save you money. COBRA is always retroactive to the day after your previous coverage ends, and you'll need to pay your premiums for that period too.
Qualifying for COBRA health insurance doesn't mean you have to take it, or that you should. One good reason to decline COBRA is if you can't afford the monthly cost: Your coverage will be canceled if you don't pay the premiums, period. ... On the other hand, COBRA might be worth a little higher monthly cost.
COBRA may still be less expensive than other individual health coverage plans. It is important to compare it to coverage the former employee might be eligible for under the Affordable Care Act, especially if they qualify for a subsidy. The employer's human resources department can provide precise details of the cost.
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA) , continuation of health coverage starts from the date the covered employee's health insurance ends and, depending on the type of qualifying event, may last for 18 months, 29 months or 36 months.
An employer that is subject to COBRA requirements is required to notify its group health plan administrator within 30 days after an employee's employment is terminated, or employment hours are reduced.
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