What is Cobra Health Insurance, the Consolidated Omnibus Budget Reconciliation Act (COBRA) is an insurance plan that intends to cover expenses of employees and their families who have to deal with a sudden annulment of their health benefits at their current employment. The holder of this health benefit can continue to get the same coverage he was previously getting under his group health plan employer’s coverage. However, COBRA works under specific parameters, for instance, if there are involuntary job loss or other reasons for the annulment of initial insurance.
Availability of the Plan
The plan comes as an offer to the employer to sponsor his employees if he has 20 or more employees holding a group health plan in the earlier year. What COBRA plans offer the employer is a temporary coverage to the employer’s group benefit. This temporary coverage is known as the continuation coverage. It will give support to the employees if their health benefit ends with their current employment. The continuation of coverage is as per standard operating procedures and guidelines that COBRA outlines for the employees and their family members. The coverage also binds the employer to provide notices of any changes to the group health benefits of the employees.
COBRA Plan Expense
In any employment, the employees have to pay a certain amount to retain their group health benefits. However, in regular employment insurance, that amount is less as the employer pays the higher part for the coverage. In case of the continuation coverage offered from COBRA, the employees eligible for continuation coverage may have to pay all or a higher premium to retain the plan. That is why COBRA coverage is often more expensive for employees.
Is COBRA the Only Option?
There could be many other plans for employees, and they have to weigh in the pros and cons while selecting one. Alternatives to the consolidated omnibus budget reconciliation act include a spouse’s plan, the Health Insurance Marketplace, or Medicaid coverage. An employee has to check all these plans to ensure that the program they opt for is more affordable and provides them with the intended health coverage identical to the group What is Cobra Health Insurance they hold with their current employers. There is always a possibility of finding other coverage plans more generous. When you compare other policies with the COBRA plan, you can check the difference and then pursue the economic program and give you the maximum coverage under the extended group health benefit plan.
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