Cobra Health Insurance Cost – Benefits, Extension and Stimulus Package

Cobra health insurance is the type of health insurance that results from the Consolidated Omnibus Budget Reconciliation Act passed by the Congress, but what are the Cobra health insurance costs, benefits, extension and the Cobra health insurance stimulus package deal ? The Cobra health plan dates back to when the COBRA health benefit provisions were created in 1986. According to the law, employees who are part of a group health coverage that is about to be terminated for some reason can still continuously receive health coverage. This is supported by the ERISA or Employee Retirement Income Security Act, the Public Health Service Act, and the Internal Revenue Code.

COBRA’s provisions include coverage for former employees, their spouses, and dependent children. The act also covers retirees who are about to lose their coverage. The COBRA law allows them to seek the continuation of their coverage at the same reduced group rates, though only temporarily. This option is a more affordable alternative than individual health coverage.

Important COBRA health insurance benefits and details you should know about

  • When to obtain COBRA coverage
  • COBRA vs. Medicare
  • The costs of COBRA

1. When to obtain COBRA coverage  – Cobra Health Insurance Cost

One of the most important details you should know is when to obtain COBRA coverage. It is recommended to continue your coverage by seeking COBRA health insurance if you yourself don’t mind paying for the comprehensive coverage you previously had or you want a guaranteed coverage and don’t want to go through the hassle of getting a new plan. This may, however, entail higher costs.

Aside from that, it would be a good idea to obtain COBRA coverage if you meet any recent health problems or if you have ongoing medical conditions. COBRA can promise guaranteed coverage for this. However, if you end your existing coverage and look for a new one, you might be hard-pressed to find one that will not turn you down due to your pre-existing condition. If you’ve tried applying for a private health insurance, it is also a good idea to try getting a COBRA coverage.

Consider getting COBRA health insurance if you’ve been in an accident within the 60-day enrollment period, or if you are taking medications that cost a lot. Those who are pregnant will also be able to save money in the long run by continuing their coverage. Those who have been laid off and those who are employed but do not receive health plans from employers can also benefit from this great offer.

2. COBRA vs. Medicare

Some people, especially those who are eligible for Medicare, tend to get confused about getting COBRA or getting Medicare. You can actually have both coverage. If you have both, and you are under age 65, COBRA pays for your medical expenses first. But if you are over 65 or if you have a disability, Medicare becomes the primary coverage.

3. The Costs of COBRA – the Cobra Stimulus Package

COBRA health insurance is a really beneficial offer. The only thing that seems to constrain people from getting the benefits of COBRA for themselves is the cost involved. COBRA does not come without costs. Although you get to stay with the same group rate, you will now pay in full for that rate. This means you will pay the same amount you paid before, then also pay the part paid by your employer. This means you don’t really get to stay at the same expense level; you still pay a bit more than you previously did. The advantages are that you stay with the group rate, which means this is still less expensive than obtaining a new individual health insurance plan.

Which Group Plans are Included in COBRA Health Insurance

There are certain restrictions as to which group health plans can be maintained under the COBRA law. Cobra health insurance can benefit plans that employers have maintained for at least a year. It is only applicable to businesses with at least 20 employees. It, however, does not include group health plans that are government-sponsored or church-sponsored. Mostly, the COBRA law applies to all group plans maintained by employers belonging to the private sector. The plans can include coverage for inpatient and outpatient hospital care, surgery, prescription drugs, other major medical care services, physician care, and other medical benefits such as vision care and dental care.

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