There are lots of questions and doubts surrounding the COBRA, hence here is an attempt to eliminate the doubts and provide clarification. Here are few common questions that people would like to know answers for regarding this Act.

COBRA Continuation Health Coverage- What is it ?

The government passed COBRA in the year 1986. This law amends the Internal Revenue Code,Public Health Service Act and the Employee Retirement Income Security Act , in order to offer continuous group health coverage, which otherwise would have been terminated.

What does COBRA perform?

It provides the right to temporary continuation of insurance (health) coverage at group rates to former employees, spouses, retirees, former spouses and dependent children.

When is this coverage available?

It is only available when the coverage is lost due to a particular reason.

To be Continued….

For more information click here

The stimulus package signed by President Barack Obama on Tuesday carries good news for those laid off workers who were finding it difficult to continue with their group health plan or COBRA. Hopefully some of your concerns would be taken care off in the new stimulus bill has special provision for COBRA or Consolidated Omnibus Budget Reconciliation Act.

A Brief Overview of COBRA

It is a decades old federal law, which refers to an extension of health insurance plan for workers. It allows the employees who lose their jobs the right to choose to continue with the group health insurance benefits provided by their group health plan for a certain period of time under certain circumstances. COBRA is included in the group insurance category and can be availed in a company with twenty or more workers. However, there is a great problem associated with it in terms of premiums.

Read the full story