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Getting to Know COBRA

Friday 22 May 2009 - Filed under Coverage Gaps + Health Care Insurances + Insurance

No, it is not the dreaded snake. COBRA is actually a law – not a health insurance company, as many mistakenly think it is. Short for Consolidated Omnibus Budget Reconciliation Act of 1985, COBRA serves to protect employees in terms of continued health insurance coverage in case of any changes in the status of employment.

In many cases, if an employee gets terminated or laid off, the health insurance coverage also stops. With COBRA, most employers are required to temporarily continue to offer the group health coverage. The periods covered are:

• 18 months for employees and dependents if loss of coverage is due to termination or reduction of hours
• 29 months for employees and dependents if loss of coverage is due to disability (within 60 days of COBRA coverage)
• 26 months for dependents if loss of coverage is due to death of the employee or due to divorce/legal separation.

Watch this video for more information.