Health insurance: COBRA and HIPPA
14th May, 2008
Most of us count on our employer for health insurance coverage. But what would happen to your health insurance if you suddenly stopped working or no longer qualified for benefits?
If something unexpected happened, you could be left without health coverage.
Let’s discuss some key issues regarding progress made in the areas of health care reform.
COBRA, the Consolidated Omnibus Budget Reconciliation Act of 1986, is a federal law that protects employees and their dependents from losing health insurance coverage as a result of job loss or divorce. If you and your dependents are covered by an employer-sponsored health insurance plan, COBRA entitles you to continue coverage when you would normally lose it. Most large employers are required to offer COBRA coverage. As an employee, you are entitled to COBRA coverage only if your employment has been terminated or if your hours have been reduced.
However, your dependents may be eligible for COBRA benefits because of divorce, death, or certain other events.
If your employment has been terminated or if your work hours have been reduced, you can continue your health insurance for 18 months under COBRA.
You can continue it for 36 months for other qualifying reasons. If your former spouse provided health coverage through work, COBRA can extend coverage for up to 36 months after the divorce or legal separation. You must pay the premiums, which cannot exceed 102 percent of the employer’s cost of the coverage.
If you obtain other coverage or remarry before the 36 months are up, the COBRA coverage terminates.
Source : http://www.theleedsnews.net/
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