What Can I Do If My Cobra Is About to Expire?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires most employers to provide continuation group health care coverage to voluntarily or involuntarily unemployed workers and their family members. This temporary coverage is typically available for a maximum of 18 months. If you are unemployed and your COBRA benefits are about to expire, you may qualify for a disability extension or coverage under the Health Insurance Portability and Accountability Act (HIPAA). Both of these federal laws allow access to health benefits despite any pre-existing conditions you may have.
Disability Extension
If you leave work due to a disability, you may be able to extend the time you can keep COBRA coverage. If you qualify for the disability extension, you will be able to maintain COBRA benefits until you become eligible for Medicare payments, which is typically 29 months after leaving work due to disability. To qualify for this extension, you must provide notification from the Social Security Administration that you became disabled within the first 60 days of COBRA benefits. A copy of the notification must be sent within 60 days and prior to your 18-month coverage period ending. If all requirements are met, you and your family can qualify for up to 11 additional months of COBRA coverage. The primary disadvantage of the disability extension is that the employer can charge you up to 150 percent for group plan coverage. This means that if you were previously paying $200 a month, your new premium under the disability extension will be $300.
HIPAA Eligible
According to Health Insurance Consumer Information, if your COBRA coverage has expired, you may also be HIPAA eligible for individual health benefits. To qualify for HIPAA, you must have had 18 months of continuous coverage, the last day of which was under a group health care plan. You cannot drop COBRA or move to an individual health insurance plan. You must have exhausted any COBRA or other state continuation coverage for which you qualify and must sign up for the individual coverage within 63 days of the end of COBRA coverage.
HIPPA eligibility allows you guaranteed access to individual health insurance, despite any pre-existing conditions you may have. Eligibility criteria vary by state. Some states require all individuals eligible for HIPAA coverage plans to buy coverage from one central plan. Other states require all insurance providers to offer HIPPA plans, which allows individuals to go with the provider of their choice. HIPPA plans will typically cost more than purchasing insurance on the open market.
Tags: COBRA coverage, disability extension, COBRA benefits, individual health, About Expire, Cobra About, Cobra About Expire
