What You Need to Do About Cobra Insurance Extension
Posted by Tim F Dalton on February 6, 2010 under Health Insurance | 
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With double digit unemployment rates and an economy that is not showing signs of recovery any time soon, many laid off American workers are dealing with not only the loss of income, but the loss of health insurance coverage. For anyone, but especially those with a family, this can be quite devastating. The good news is that the government requires that employers offer continuing coverage through the COBRA insurance plan.
Too often, laid off or terminated employees feel that they do not need to opt for COBRA benefits. This could be a big mistake. For one thing, anyone who shows a lapse in health insurance coverage could have a difficult time being added to a new policy in the future. For another, it is impossible to predict when illness or an accident may affect you or your family members.
COBRA Qualifications
The COBRA insurance extension provides supplemental health insurance that fills the gap between coverage due to unemployment. Your last employer is required to provide this option. You will qualify if you have had hours reduced and become a part-time employee ineligible for the employer’s health insurance benefit, laid off, or terminated for any reason other than gross misconduct. Insurance coverage extends to all dependants who were previously on your policy.
The American Recovery and Reinvestment Act (ARRA) includes a Cobra Extension that extends benefits to those former employees who were laid off or terminated between September 2008 and February 2009. If you still do not have health insurance due to an employment separation that occurred between that period of time, you can now elect to receive COBRA benefits.
Paying for COBRA Insurance
After you are no longer employed, you will have to foot the bill for health insurance premiums. The former employer is still the administrator of the plan, but they are not required to pay any part of the monthly premium. You should be aware that the cost may still be far less than if you purchased an individual plan. The federal government also offers subsidies, up to 65%, to anyone who is unable to afford the entire insurance premium.
What You Need to Know After Losing Your Job
It is your employer’s responsibility to report the separation and eligibility for COBRA benefits. There are various regulations that apply to determine who is eligible, what companies are required to offer COBRA, and what events qualify for the continued health insurance benefit. If you feel that you should be able to continue to receive coverage, you may want to consult with a company that can help you sort out the details.
Time is of the essence when it comes to the COBRA insurance extension. The employer has 14 days to report separation. The former employee has 60 days to make a decision about receiving the benefit and then another 45 days to pay the first premium. You must meet these timelines in order to receive insurance.
There are also specific regulations from the health insurance provider as to how and when claims for extended coverage are filed. The insurance company may deny benefits. You are allowed to appeal the denial within 60 days. Because the health insurance provider often carries numerous plan stipulations, you may want to obtain assistance when dealing with the company.
The circumstances and situations that can affect eligibility for the COBRA insurance extension are many. If you feel the need for help, take heart that there are resources available. Don’t miss out on continuous health insurance coverage due to confusion.
Want to find out more about a Cobra Extension? Then visit our site to get information about the Cobra Insurance Extension.
