Is The COBRA Option The Plan For You To Choose?

In 1985 Congress passed a insurance act called COBRA as a way of protecting qualifying employees and their ability to continue to receive health insurance through their company regardless if the employee is fired or quits. With the wealth of insurance options that are available, it is up to the person to make a decision concerning whether or not to opt for it or find health insurance coverage through a private insurer. This decision is generally dependent on how beneficial it will be to any former employee.

In the event that a former employee will have trouble securing a good insurance plan elsewhere because of budget issues, it is a great option to have available. COBRA will entitle employees to continue to receive health insurance coverage uninterrupted for up to 18 months and in the case of a disabled employee, who is entitled to 29 months of coverage. This significant time frame is to allow the employee to find new employment that offers as good as or better health insurance benefits. It also has dental coverage attached to its policy which is different than a regular health insurance policy because dental coverage will have to be purchased in a separate policy.

In many cases it is not uncommon for most health insurance companies to deny coverage for pre-existing conditions that employees might have. The beauty of the COBRA plan is that it provides immediate health insurance coverage for anyone in desperate need of continued health care coverage and denial for pre-existing conditions is not an option. In a private insurance company scenario, if a private insurer will even insure pre-existing issues, it is usually very expensive. This policy will save the insured some serious money.

COBRA does not just cover the employee; it also provides coverage for the employee's spouse and children. If the employer was the only insurance coverage option, use COBRA. It is worth it if any family member is dependent on medical coverage. COBRA benefits extend to the employee's dependents should that person die and even ex-spouses should the employee get divorced. If a child passes the health coverage age limit, the policy extends coverage for another 18 months.

Another important fact that separates a COBRA policy from most all private insurance polices is that pregnancy is not considered a pre-existing condition. This is very important for any employee or spouse that is pregnant and they should sign up on the COBRA policy. This also provides coverage for the initial doctor visits that the infant will have.

COBRA is a health coverage option for people who have recently quit their job or experienced layoff. There are many benefits to signing up for a COBRA policy. COBRA is less expensive than using a private health insurer. COBRA benefits also extend to the dependents of the employee and helps provide coverage during the gap in employment.