COBRA is intended to prevent the loss of vital health care.
The Consolidated Omnibus Budget Reconciliation Act, or COBRA, is intended to allow you to continue with preexisting health insurance coverage when your employment ends. It is only intended to provide continuance for a short while, giving you an opportunity to find other suitable coverage. COBRA insurance coverage is going to expire if it is not replaced first, making it important to understand your rights when that day comes.
When COBRA Starts
Without COBRA, you could suddenly find yourself losing necessary medical care.
If you are eligible for COBRA, the coverage begins at the termination of your original health insurance plan. You are still entitled to the same benefits and care, but must pay the cost of the full premium. Employer contributions to group insurance is one benefit that is given up under COBRA. COBRA must be paid in full by you, the insured party, and serves only as a temporary coverage to prevent serious health care lapses.
COBRA Extensions
Ordinarily, COBRA benefits extend your health insurance coverage for a maximum of 18 months. Under certain circumstances, if you are a person who has difficulty finding insurance coverage due to preexisting conditions, COBRA coverage can be extended to as much as 36 months. COBRA is not intended to replace having a normal health care plan. Instead, COBRA acts as an emergency method of maintaining vital health care between regular plan coverage while you are between jobs.
Group Coverage Plans
You have the option of seeking another employer-sponsored health insurance plan or joining a group coverage plan offered by an organization such as AARP. Replacing COBRA coverage with other insurance is economical because COBRA often ignores the savings passed on through group plans.
Continuing Coverage for Uninsurable Persons
If you are a person who becomes uninsurable, before or after COBRA goes into effect, you may be eligible for up to 36 months of COBRA coverage. After three years, your only recourse may be to seek disability insurance through state and federal offices.
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