Access to affordable and effective health care can be challenging, especially in the event of a job loss. This is where COBRA can be a good way to ensure you are covered, however, is COBRA right for you?
Consolidated Omnibus Budget Reconciliation Act, or COBRA, allows employees to keep their employers’ plans for up to 18 months following a qualifying event, such as the death of a spouse, divorce or legal separation, termination of employment, or a reduction in the number of hours you work.
Businesses with more than 20 employees, plus state and federal governments, are required to offer COBRA, immediately notifying you of your COBRA rights upon the loss of your job.
Things To Consider With COBRA
With COBRA, you will pay more for coverage than you did through your employer’s plan, however, COBRA may actually be the cheaper option than alternative health coverage since you will likely receive a lower group rate than with most individual plans.
In the event you have children that are losing their health coverage, be sure to find out if they are eligible for health coverage under the State Children’s Health Insurance Program, or SCHIP.
Before you choose COBRA, it is critical to consider all of your other options. If your spouse has group health coverage, you may be able to join their plan, even outside open enrollment, especially since you are experiencing a qualifying life changing event. With life changing events, you are also eligible for coverage under the Affordable Care Act, or ACA, as well.
While it is important to take the time to determine what type of coverage is right for you, however, you must do so within 60 days. Contact your insurance agent immediately since they can help you to decide what coverage is right for your and your specific needs.
From health insurance, to life insurance, to any of your other insurance needs, Brazelton Insurance Group is here to help you. Contact us today for more information!