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Get to know all about COBRA

Get to know all about COBRA

The urge to get a health insurance policy these days is not a matter of show off but indeed one of the major requirements of human beings. An individual, who is devoid of any standard health insurance policy, will have to pay much a higher price for all the medical treatment and required expenses, if in case he/she falls sick or meet any serious accidents. The expenditure on healthcare has risen these days in a tremendous manner, thus making it troublesome for a person to afford it singlehandedly without the availability of a health insurance. Many a times it happens that the health insurance policies purchased by people often expires because of some reasons and those who were without any health insurance policy had to suffer a lot. This is because, without the cover of a health insurance policy, people are more susceptible to pay a huge price for the expenses relating to medical treatment, if they fall prey to any disease or health hazards all of a sudden. Thus to help people in such a time, COBRA comes into action. COBRA stands for Consolidated Omnibus Budget Reconciliation Act and it deals with lost of issues and matters that have been discussed below.

COBRA

COBRA can be termed as a set of terms or as standalone healthcare coverage plans that enable people (mainly the workers, employees and their family members) to remain under a provisional healthcare cover, when they are in a transition between leaving the prior and acquiring a new healthcare policy. So those people, who are shifting from their old healthcare policy and migrating to a new policy, can take the facility of getting healthcare coverage under the terms of COBRA. Upon compliance with certain eligibility criteria, employees and workers can continue to remain under their existing group healthcare policies for a specified period of time. COBRA allows people to remain under their existing health insurance policy during extreme circumstances. Some of these conditions include unemployment, out of job due to personal or professional reasons; having encountered a decrease in job hours, in between the process of shifting of jobs, have become divorced or widowed and the various other similar circumstances. It must be remembered that, COBRA can only provide cover to those people who were under the group health insurance coverage earlier and have recently encountered loss of healthcare coverage, due to the above mentioned circumstances.

COBRA is a federal law plan that has an impact on those recruiters, who have manpower strength of 20 employees or more than that working under them and all these employees were provided group healthcare plans by the recruiters themselves. The laws stated by COBRA, expects these recruiters to allow their workers and employees and also their family to continue obtain cover from the group healthcare policy although they have left their jobs and are presently employed elsewhere. But this healthcare cover will be temporary and it will lapse after a certain period of time. In return of all this, the person under the temporary healthcare cover by COBRA, will need to pay the money for premium of the policy. The sum of money can differ and may require that the person pay the total amount of premium as a whole or pay about 102% of the price of the healthcare program.

The advantages and disadvantages of COBRA

Similar to all other existing health insurance policies, COBRA, a sort of temporary healthcare coverage program has also its own advantages and disadvantages. Starting with the advantages that are offered by COBRA, it helps an individual to continue getting coverage from their previous healthcare policy, in case of any health disasters is met. In addition to this COBRA also keeps pre mentioned terms and conditions of the earlier healthcare policy intact. Apart from this, if a person would have applied for a personal and new health insurance policy then he/she would have to lots of troubles like complying with the new clauses, eligibility criteria, undergoing certain medical tests, fill up huge number of forms and documents and many others. But COBRA minimizes all these problems and allows the person to lead life free of all these tensions, for the time being.

But, when talking about the disadvantages of COBRA, it requires a person to make a payment that is much more when compared to their previous healthcare policies. Not only has this, but COBRA also compels the customers to face time limitations when medical coverage is essential. Also, the respective person is required to fulfill all the stipulations and adjust to various criteria whenever needed, as mentioned by the terms of COBRA. This will only make the person an eligible customer of this temporary health insurance coverage program.

Substitution plans apart from COBRA

In case you become suitable to get cover under the diverse plans of COBRA, but decide not to continue your healthcare policy in the ways as mentioned by COBRA, then you can switch to other substitute programs.

In case you decide not to abide by the terms of COBRA, then you have the option of choosing any single health insurance policy for your own and start everything from a new aspect. But for this, you will have to undergo various medical tests, submit many documents and full up bulk amount of papers and forms in order to get a whole new health insurance policy. However, it happens in many cases that the pre subsisting medical requirements of a person are either absent or not covered by these kinds of individual healthcare policies. This is in fact a mater to worry about!

There is another way of getting healthcare coverage, if you decide to reject the plans and coverage options of COBRA. In that case, you will need to include yourself with any of your family member's existing healthcare plan. In this case, you can adjust all the monetary issues with your family member regarding the payment of premiums and in the entire process you will notice, that the money for premium that is paid by you is much lower, when compared to that of a personal health insurance policy. Also, you will notice that you will have to pass through lesser strains and tensions while coming under the coverage of your family member's healthcare policy. In case of COBRA, you were required to stay cautious about the expiry date of the temporary healthcare policy's coverage. But, when you choose to include yourself to the already existing health insurance coverage of any of your family member, then you are relived of that tension too.

People for whom COBRA is actually meant for

Few types of people may discover that they are not suitable to get any other healthcare coverage options excepting the COBRA coverage. This is because COBRA turns out to be much beneficial for these groups of people only. Such groups of people generally consist of those, who decide to obtain a new health insurance policy that would be provided to them by their recruiters (under whom the people will work as employees in the mere future).

There may be other reasons for which these person desires to apply for the COBRA coverage. Many of these people often feel comfortable in a paying high amount of money as premium or desire to keep their pre subsisting medical requirements completely intact with the aid of COBRA. Many of these people are devoid of any family member or it may happen that their existing family members are devoid of any health insurance policies. So, they will not have the option of including themselves to their insurance policies for the time being and then switch to an individual healthcare plan at a later period of time, whenever the situation eases. So COBRA is undeniably a necessity for them.

Apart from these, there are few people who reject to go through various stipulations and clauses, medical tests and other issues as imposed by a new health insurance policy. So, in case you find that you are also included to any of these categories mentioned above then COBRA is the right option for you too.

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