What is COBRA?
Most employees have probably heard a reference to COBRA at some point, but many workers do not have a clear understanding of what it is. This article will provide a brief outline of what COBRA means to the average employee. For more detailed information, contact a Texas health insurance representative.
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, which was signed into law in 1986 under President Reagan. It is a far reaching act that covers many different issues, from disability benefits to railroads, but most American workers are mainly concerned with Title X.
Title X
This section of COBRA regulates health insurance offered to employees by employers. According to this title, qualifying companies, who have twenty or more employees, must continue health insurance benefits for employees after their jobs end, if they are in qualifying circumstances. Qualifying circumstances are:
- Death of the covered employer (coverage will continue for his or her family)
- Termination or severe reduction in hours
- Divorce or legal separation (coverage will continue for the employee’s ex-spouse)
- A dependent child reaching an age at which he or she would normally not be covered
A COBRA plan generally lasts 18 month, but that time can be extended under certain circumstances, such as employees with disabilities. If you are interested in coverage under COBRA, you are generally required to make a decision within two months of leaving your job. You will also have to pay a premium, generally about $400 for individuals and $1000 for families.
Contact Option 1 for Texas Health Insurance
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Texas health insurance option can be overwhelming, especially during a tumultuous period like the loss of one’s job. Option 1 can help you by reviewing your options and providing you with the clear, precise information you need.
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