Healthcare Insurance

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Consolidated Omnibus Budget Reconciliation Act (COBRA)

Another kind of continued coverage is COBRA, a federal law under which certain workers and their families, previously enrolled in a group plan, may continue the same coverage with almost no change in premiums for a specified period. The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires certain companies, such as those with 20 or more employees, to offer health insurance coverage under COBRA. However, employers not subject to COBRA, such as certain church plans and some union-sponsored plans, often provide some conversion coverage, most likely with fewer benefits than those available under the group plan.  

Coverage under COBRA allows eligible employees to keep the same coverage as under the group plan for 18, 29, or 36 months. A widowed or divorced spouse or a child who is no longer a dependent is also eligible. COBRA premiums are usually higher than under the group plan. If an insurance carrier terminates a group plan, you can't continue your coverage or convert it to COBRA. 

COBRA can furnish excellent short-term coverage, bridging the gap until you find a new job with health coverage or another policy elsewhere.  You have 60 days from the date of group coverage termination to decide whether to enroll in COBRA. If you choose to do so, the coverage effective date is retroactive to the date the group plan ended. You then have 45 days from the date you choose to enroll in COBRA to make your first premium payment. When your coverage under COBRA runs out, you may convert your plan as described in the previous section. 

Blackburn Group, Inc.
Penfield, NY 14526-0052
(585) 586-4530,  (585) 586-7479 fax,  Email: sales@blackburngroup.com
  

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