(COBRA) stands for Consolidated Omnibus Budget Reconciliation Act of 1985. It was a requirement that added health care continuation to group plans. The coverage that was required to be provided is referred to as COBRA.

Basically, (COBRA) guarantees employees the right to keep their group health care coverage for up to 18 months and up to 36 months under certain conditions for a spouse or dependents when they would otherwise lose it after leaving their job. (COBRA) generally covers employees who have resigned or are terminated for any reason except “gross misconduct”.

However, (COBRA) can be expensive. Employees are guaranteed the exact same health plan but instead of their employer covering a substantial portion of the premium the cost now is all out of the employees pocket.

There are certain conditions that will cause COBRA coverage to end, including:

Reaching the last day of COBRA coverage (after 18-36 months)
The employer ceases to offer a group health care plan
The employer goes out of business
The beneficiary obtains coverage elsewhere
The beneficiary doesn’t pay the premiums
The beneficiary is entitled to receive Medicare benefits

Sources:

http://cashmoneylife.com/what-is-cobra-insurance/

http://www.cobrainsurance.com/COBRA_Law.htm

This article was written by Victoria, a contributing writer and employee of The Health Insurance Specialists Inc.

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