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COBRA Group Health Insurance

By: Sam Dicosta

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The current federal subsidy program for COBRA ended June 1st. The Consolidated Omnibus Budget Reconciliation Act (COBRA) provided for continued group health insurance benefits to individuals and families who involuntarily lost their employer-sponsored group health insurance plan through a layoff or reduction in work hours. This program came about to provide relief for these individuals during times of economic downturn and recession. This law was passed in 1986. For most people, COBRA allows the continuation of group health insurance benefits for approximately 18 months. There are exceptions based on certain medical criteria.

Besides COBRA, the American Recovery and Reinvestment Act (ARRA), which was passed in 2009, provided for a government subsidy of the COBRA group health insurance premiums, and allowed for additional eligibility to the COBRA program. This was specifically passed during the current recession to help the many unemployed people in America.

However, at this time, all individuals who are newly out of work, are ineligible for COBRA group health insurance benefits, and many are about to lose their government subsidy contribution. This is very unfortunate because the current recession has resulted in continued increased unemployed Americans.

Although the Senate tried to extend the COBRA subsidy program, this was not done prior to their Memorial Day break. The Senate will consider it again when they return June 7th. However, there is no telling what will happen at that time. If it is passed, it could be retroactive.

This is how COBRA group health insurance works. If you are terminated at your work, you would need to speak with your human resources department to find out if you and your employer meet the criteria for COBRA group health insurance benefits. Most companies with more than 20 employees are qualified. You will then need to notify your plan administrator of your employment status, and this must be done within thirty days. Of course, you must have already been enrolled in your employer-sponsored group health insurance plan at the time of the change in employment status. COBRA applies to continuation of coverage, not initiation of coverage. Once you have notified your plan administrator, you then have forty-five days to pay your initial COBRA group health insurance plan premiums. This will make your plan retroactive to the day that your employment terminated.

Your family members may also be qualified to be enrolled in your COBRA group health insurance plan. If they were already members of your employer-sponsored group health plan, they will more than likely continue to qualify for COBRA group health insurance benefits. Be sure to check with your human resources department, or plan administrator. The premiums for COBRA group health insurance are the same as they were before, except an additional 2% administrative fee may be added on. Therefore, an individual may pay as much as 102% of their previous premium costs for COBRA group health insurance. Again, be sure to investigate if you qualify for the ARRA government subsidy, which could cover 65% of the COBRA group health insurance premiums.

If you find that COBRA group health insurance is too costly for you, you do not have to enroll in this continued coverage program. You can still look elsewhere and purchase a private individual or family health insurance plan if that is more cost effective for you and your family. You have choices besides COBRA group health insurance.

Article Source: http://depositarticles.com/

Sam Dicosta shares his knowledge on health insurance that makes you able to find the plans that best fits your needs. If you want to know about Family health insurance Georgia, health insurance Georgia, COBRA group health insurance, affordable health insurance Georgia, Wellpath north Carolina visit www.cvty-healthinsurance.com

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