Know the Facts About Cobra Insurance Extension

As more and more Americans are laid off and the unemployment numbers in the country continue to rise, many of them are concerned about the loss of health insurance benefits. This double whammy of losing income and benefits at once can be devastating to a family. Fortunately, there is a government program called COBRA that allows anyone who loses their job to continue receiving health insurance. For many Americans who’s COBRA insurance is currently about to expire, a new COBRA Insurance Extension has recently been passed.

Don’t make the mistake of thinking that you don’t need health insurance. If your health insurance lapses, you may have a problem covering yourself and your family when you do get a new job. It is also not a good idea to ‘play the odds’ and hope that you will not need medical coverage; it is impossible to predict when accidents or illness may occur.

Qualifying for COBRA

The COBRA insurance extension provides supplemental health insurance that fills the gap between coverage due to unemployment. Your last employer is required to provide this option. You will qualify if you have had hours reduced and become a part-time employee ineligible for the employer’s health insurance benefit, laid off, or terminated for any reason other than gross misconduct. Insurance coverage extends to all dependants who were previously on your policy.

If you lost your job between September 2008 and February 2009, you can still take advantage of COBRA health insurance benefits. The American Recovery and Reinvestment Act (ARRA) allows a further extension to anyone losing employment during this time period and who is still unemployed.

How Much Will It Cost?

Be aware that after separation from your employer, you will have to pay the entire health insurance premium out of your own pocket. However, there is some good news. For one, the cost is often less expensive than acquiring an individual insurance plan. The second piece of good news is that the federal government offers a subsidy to those who cannot afford the premium, up to 65%.

What Happens After Loss of a Job

The responsibility of reporting a layoff or termination is up to the employer. They have 14 days to do so. Eligibility for COBRA insurance extension is determined by a number of factors including the size of the employer, the circumstances of separation, and many other rules and regulations. It may be helpful to use the services of a consultation company to help you sort through 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.

Each health plan is subject to specific rules regarding how to file a claim for benefits. After filing a claim, you may be deemed ineligible. There are protocols in place that allow you to protest this assessment, and you must do so within 60 days. If you are not aware of the insurance rules and regulations in place, it might be best to use assistance in claiming COBRA benefits or submitting a protest.

The circumstances and situations that can affect eligibility for the COBRA insurance extension are many. If you feel the need for help, take heart that there are resources available. Don’t miss out on continuous health insurance coverage due to confusion.

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Finding Health Insurance

The importance of health insurance in this day and age cannot be overlooked. One main reason why health care insurance has become very important is that health care has become very expensive over the last few years. This can be attributed to the advancements that have taken place in the field of medical sciences.

New technologies have led to development of new methods that can be used for treating various kinds of diseases. To bear medical expenses these days has become more of a problem for people these days.

Health insurance is a type of insurance that pays for health care expenses. All medical expenses are covered by this insurance. This type of insurance can be provided by government funded agencies or by private companies who deal in the business of insurance. People may purchase this insurance individually or on a group basis.

Health care insurance can be purchased either individually or by many people together as a group. When people purchase an insurance policy for covering their own medical expenses, it is an individual health care insurance plan. When a firm or an organization purchases an insurance plan to cover the health care expenses of a group of employees, it is a group health care insurance plan.

Health insurance can be defined as a contractual agreement between an insurance company and an individual. An insurance company is either a government agency or a private firm. A non profit organization can also work as an insurance company.

On the basis of this evaluation and the needs of the person buying the insurance plan, a financial plan is developed. This financial plan may be the one which pays a premium every month. The financial plan may even be developed for a year where a tax is paid annually. The type of financial plan developed is basically the discretion of the insurance company and its policies.

Health insurance can be of different types. Employment based health care plans are for employees of an organization. Direct purchase plans are individual health care insurance plans.

Comprehensive health insurance plans are the ones which pay a percentage of the medical expenses or the expenses which are left or not paid for after the insured person has paid some of the amount of the medical expenses. Scheduled health care insurance plans are the ones which provide for day to day health care expenses. Scheduled insurance however has fewer benefits as compared to comprehensive health care insurance plans.

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