COBRA health plan is the abbreviation of The Consolidated Omnibus Budget Act of the year 1985. It lets people carry on their medical insurance for up to one and half years after leaving job. COBRA health plan provides coverage for the spouses as well as children. Children do not get coverage under their parents' medical indemnity plan because of the age factor can choose COBRA by means of parents' employers.
Once, a person loses his medical insurance coverage, he or she is provided with 2-month grace period within which he or she can wander around for another choice or choose COBRA. However, if COBRA is not elected within 2 months, no longer he or she can avail it.
What coverage does COBRA provide?
COBRA lets a person carry on his or her medical insurance policy through the employer without making any change in the coverage. But, the disadvantage is that you should pay the whole monthly premium instead of the reduced premium you usually pay by means of your employer. It can go up to several hundred dollars every month based on tenure of your insurance coverage. You could have the choice of selecting a slighter version of the similar coverage by removing your dependants, to minimize the rate of monthly premium. Nevertheless, you won't be eligible to raise your present level of insurance coverage.
Is COBRA good for you?
COBRA is perfect for the people with a pre-existing medical condition or recurring health-related problems, which make getting health insurance from the private insurance companies expensive or complicated. COBRA is also a good choice for the people, who are waiting for a new health insurance from their new employer (most of the employers have a waiting period of one to three month prior to you become qualified for getting coverage). Expecting mothers and women who are likely to be pregnant and looking for pre-natal healthcare coverage can also opt for such plan. COBRA policy also covers prescribed medicines, hospital care and surgical processes.
Are you the right candidate to appeal for COBRA?
If you are healthy and young and have not foreseen any healthcare procedures; not likely to get pregnant shortly; or don't consume any prescribed medicine, COBRA doest not demand high monthly premium. It is better that you wander around to get a cheaper and private medical insurance plan. Or, you can also opt for lesser coverage for a small quantity of time. But, do not forget that you should not loose your insurance coverage totally; since, it may make getting insurance from any private insurance company expensive and complicated in future.