COBRA. What Is It?

The economy these days is making it hard on a lot companies to run their operations and just keep afloat.  There have been re-budgeting, restructuring, lay-offs, and any other ways to save money and stay in business.  With all this happening many have lost their jobs and their health insurance.


When someone employed has insurance through their job and then gets laid off or loses their job for some reason, they have the option of continuing their health coverage for a time or not electing coverage.  This coverage, after employment has ceased, is called COBRA.


COBRA coverage is paid by the employee and tends to be higher in cost than it was when employed with the previous company.  This is mostly due to the fact that the employer paid a percentage of the premium cost.


In order to elect for coverage you have to have received the election package from the employer.  The employer has 30 days to send the package and the employee has 60 days to elect for coverage.  Coverage can last for up to 18 months which gives you ample time to find a new job and get health insurance with a new employer.


This is a good idea to have if you are between jobs and can afford it.  It helps keep the waiting gap between coverage shorter if none at all..  If you don't have the money, do not lose hope.  If you have a hospital visit, it is possible that the hospital would be willing to pay the premium for the month you were in the hospital.  There are other agencies I am sure that would help with those premiums.


So if you find yourself in a situation like this, consider electing for COBRA coverage to keep your health coverage a little longer.

Helping you get the upper hand to change your life forever,

Peter Bunn
Rising Leader

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