Cobra Insurance

The Consolidated Omnibus Budget Reconciliation Act (COBRA) was passed in 1986 in order to allow for certain people to continue their health insurance coverage even after termination of employment.

Buying individual health insurance policies can be a very expensive investment. It is difficult indeed for the average person to afford without the benefit of a group policy. Cobra insurance allows certain employees who have left their jobs, some retirees and spouses and dependents to maintain their group health coverage after the termination of gainful employment.

While staying with the same insurance will usually cost more than the insurance did while the individual was actually working, it is still cheaper than trying to find new insurance. It will also maintain coverage on any existing conditions, avoiding later denial of coverage for something that will become a pre-existing condition when the insurance is changed.

Staying with the same insurance usually costs more, as any expenses that were formerly covered by the employer as part of a benefit package are now paid directly out of the former employees pocketbook. While this can make cobra insurance a little more expensive, it is still much cheaper than trying to find a new insurance policy.

Pre-existing conditions are another benefit of cobra insurance. Any conditions which have been treated under the old insurance policy would become pre-existing conditions with new insurance. By staying with the same insurance company, any current coverage will be maintained and any current or pre-existing conditions will still receive full health care coverage.

While the level of insurance coverage may be varied with cobra insurance, it is possible to maintain the same coverage or change that coverage as long as it is done within a short time after leaving the job. Cobra insurance usually gives an individual ninety days to fill out the necessary paperwork. This grace period may be different for some employees, so it is best to speak with someone in the human resources department to ascertain the relevant information regarding the policies and regulations for continued insurance coverage under the cobra insurance.

Insurance contracts are annually based. It is not legal to change an insurance policy outside of enrollment or re-enrollment except in the advent of mitigating circumstances such as marriage, divorce, or termination of employment. Any factor which will directly affect the individual insurance policy holder and their insurance needs is usually considered a mitigating circumstance and will allow for a change in coverage.

By using this definition, it is possible for the policy holder to make any changes they may deem necessary in regards to their insurance needs at the time of renewing their policy. This could include cutting some insurance benefits or the addition of some policy riders or benefits that may be foreseen as beneficial.

If an individual does find themself in between jobs for whatever reason, cobra insurance can aid them in many ways with their personal insurance needs. By allowing the policy holder to customize and revise their insurance coverage during a difficult time, cobra insurance can save time and money when looking for viable insurance coverage.