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.
Too often, laid off or terminated employees feel that they do not need to opt for COBRA benefits. This could be a big mistake. For one thing, anyone who shows a lapse in health insurance coverage could have a difficult time being added to a new policy in the future. For another, it is impossible to predict when illness or an accident may affect you or your family members.
COBRA Qualifications
The COBRA benefit provides a supplemental insurance policy that bridges the gap in coverage between employment. The individual’s most recent employer is the provider of the plan. You can receive this benefit if you have been terminated for any reason other than gross misconduct, laid off, or have had your hours reduced to part-time status which disqualified you from receiving health insurance. The coverage also applies to your family members who were previously included in the 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?
After separation from your employer, the company is required to offer COBRA benefits but they do not have to pay any portion of the monthly insurance premium – that is the responsibility of the former employee. Although you will pay more than your contribution while employed, it is still far less than individual plan coverage. Recently the federal government announced a 65% subsidy for those unable to afford the monthly premium under COBRA.
What Happens After Loss of a Job
Your former employer is responsible for reporting COBRA eligibility of separated employees. Eligibility is determined by a number of factors, including the size of the company and what events occurred to cause the loss of the job. There are many rules and regulations so it may be beneficial to use the services of a company that can help you in the case of determined ineligibility.
The employee has 60 days to decide whether he or she wants to take advantage of COBRA benefits. If the former employee does elect to continue health insurance coverage, there is a 45 day period in which the first premium must be paid.
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.
Learn more about Cobra Extension. Stop by our site where you can find out all about Cobra Insurance Plan and what it can do for you.