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The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that provides former employees the right to stay on their existing group health plans for a period of time following job loss. This includes employees in private-sector companies with over 20 employees, and all state and local governments. It was signed into law on March 23, 1985.
Under COBRA, the employer must provide the option of continuing health benefits to terminated employees, survivors of deceased employees, and those employees who experience a reduction in hours of work. The period of time covered by COBRA benefits is limited to 18 months, however this period can be extended under certain circumstances. During the COBRA period, employees are responsible for the full cost of their coverage plus a small administrative premium.
COBRA can be an invaluable asset for people who have recently lost their job or have experienced a reduction in hours of work. It can provide necessary medical insurance in times of crisis, but it is important to remember that COBRA coverage is not a long-term solution to health insurance needs. It is important to research other health insurance options available such as individual health insurance and other insurance programs available to people who are not able to maintain steady employment.
For people who decide to take advantage of COBRA coverage, it is important to remember to pay premiums on time. Missing a payment could result in losing the benefits, as well as being billed for back payments and administrative fees. The employer is also able to modify the plan benefits during the COBRA period, but must be sure to follow the legal regulations and notify the employee accordingly.
Overall, the Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that provides important health benefits to employees who have lost their jobs or experienced a reduction in hours of work. It is an invaluable asset during such times, however it can be costly, and other health insurance options should be investigated as well. For those who choose to take advantage of COBRA coverage, it’s important to remember to pay premiums on time and be aware of regulatory changes and notifications from their employer.
Under COBRA, the employer must provide the option of continuing health benefits to terminated employees, survivors of deceased employees, and those employees who experience a reduction in hours of work. The period of time covered by COBRA benefits is limited to 18 months, however this period can be extended under certain circumstances. During the COBRA period, employees are responsible for the full cost of their coverage plus a small administrative premium.
COBRA can be an invaluable asset for people who have recently lost their job or have experienced a reduction in hours of work. It can provide necessary medical insurance in times of crisis, but it is important to remember that COBRA coverage is not a long-term solution to health insurance needs. It is important to research other health insurance options available such as individual health insurance and other insurance programs available to people who are not able to maintain steady employment.
For people who decide to take advantage of COBRA coverage, it is important to remember to pay premiums on time. Missing a payment could result in losing the benefits, as well as being billed for back payments and administrative fees. The employer is also able to modify the plan benefits during the COBRA period, but must be sure to follow the legal regulations and notify the employee accordingly.
Overall, the Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that provides important health benefits to employees who have lost their jobs or experienced a reduction in hours of work. It is an invaluable asset during such times, however it can be costly, and other health insurance options should be investigated as well. For those who choose to take advantage of COBRA coverage, it’s important to remember to pay premiums on time and be aware of regulatory changes and notifications from their employer.