Cobra Medical insurance or Consolidated Omnibus Budget Reconciliation Act is a federal law created in 1985. It can be used by the individuals who have experienced a job loss or other qualifying option to continue their current health insurance coverage. It can be recovered by the workers and the families, who lost their health benefits by the group health plan for unlimited period of time. It is valid under certain circumstances such as voluntary or involuntary job loss. An individual is eligible for cobra coverage if he or she have enrolled in the employers health plan when the the work was started.
Benefits of using COBRA:
The health plan must be continued to be in effect for active employees. The coverage will be cancelled if the premiums are not paid periodically. This is a temporary health coverage after leaving a job. More than 20 employees are required to offer COBRA coverage to those who qualify.
As an employee one must has been laid off, fired, retired or quit the job or your work should no longer be required to cover you under a group health plan. The employer or the insurance carrier both give the information to the coverage network and hence the organisation has full rights to plan the documents and enroll them initially.
Process of coverage:
Within 60 days, it will be decided about whether to continue with your health coverage or not. If you elect coverage plan under it, then this will start the day after the employers plan coverage. The user can even continue with the same doctor and other providers by following the existing plan details. It may last for up to 18 or 36 months and even depends on the type of qualifying event. The best alternative for your health plan is COBRA. If an individual plan is selected from a broker or an insurance carrier then under the Affordable Care Act (ACA), the loss of your job and related health coverage qualifies the special enrollment.
Conclusion
Depending on the expected income it may be qualified by COBRA. Every other insurance is less expensive option from COBRA. It provides with the same coverage that are offered by your employer. The beneficiary can keep this insurance as Cobra Medical insurance plan even after they leave the job. The same doctors and the same services with the same health plan benefits are offered. It may be organized by paying 100% of the cost under the health plans.