COBRA

What is COBRA Insurance?

COBRA stands for "Consolidated Omnibus Reconciliation Act" - legislation that ensures that qualifying individuals who leave an employer-sponsored health plan have continued access to health care coverage. COBRA applies if you leave a businesses of 20 or more full-time employees and need temporary health insurance.

COBRA lets you can extend your group benefits for a period of up to 18 months (or longer in certain circumstances). But you must pay the FULL premium (i.e. your previous contribution PLUS the amount your employer contributed plus a 2% administrative fee.)

Your coverage will generally be identical to the group plan your former employer offers current employees. In some cases you have the opportunity to select reduced coverage (e.g., by selecting a lesser plan during the company's open enrollment period or by opting out of dental coverage not bundled with the medical coverage). However, you cannot increase your level of coverage.

Individuals who qualify for an individual or family insurance plan can usually obtain health care coverage for a substantially lower monthly premium. By choosing an individual plan instead of COBRA you can choose from a variety of plan designs, usually with a much lower monthly premium, but you will lose valuable rights under HIPAA.

COBRA Alternatives --

Did you know that Individual insurance can be a viable alternative to COBRA insurance coverage? Freedom Benefit Solutions will help you understand the health insurance coverage options available to you when you leave a job, change family status or would otherwise leave an employer-sponsored health plan.

Let us help you . . .

Have a specific question? Call or email us today!