| In this day when companies are facing | | | | that event, though, you may still be able to |
| layoffs, buyouts, and other financial | | | | get your health insurance coverage through |
| difficulties, it may be difficult to hold on | | | | HIPAA. |
| to a good health insurance policy. Thanks to | | | | |
| the government, however, there has been a | | | | Application Time Is Limited |
| couple of programs that will allow you to | | | | |
| keep the same coverage you had before your | | | | After a qualifying event occurs, you need to |
| situation changed, if you act soon enough. | | | | act rather fast because there is not a lot of |
| Here are some things you need to know about | | | | time given in which you need to apply for the |
| the COBRA program that could enable you to | | | | COBRA program. You must act within 30 days of |
| enjoy the same health insurance coverage you | | | | the event by informing the insurance plan |
| had. | | | | administrator (the employer) of your intent |
| | | | to continue the coverage. It is best that you |
| COBRA, which stands for the Consolidated | | | | do it in writing, for your own records. After |
| Omnibus Budget Reconciliation Act, enables | | | | you notify them, they will send you a letter |
| you to keep the same coverage for up to 18 | | | | within 14 days, and then you have up to 60 |
| months. In some cases, this time period may | | | | days to decide if you will accept the COBRA |
| be extended for an even longer period of time | | | | coverage. |
| for dependents. | | | | |
| | | | The Premiums |
| Qualifying Events | | | | |
| | | | While you are able to continue the coverage |
| In order to qualify for this program, | | | | that you had prior to the event, there is a |
| participants have to meet certain | | | | major difference that also takes place. |
| qualifications. The good news is that the | | | | Whereas the employer paid a part of the |
| conditions for COBRA are rather lenient. If | | | | premiums previously, now it becomes entirely |
| you were an employee, and are now out of | | | | up to you to meet the full price. So, there |
| work, you may qualify, even if you were | | | | may be a little sticker shock, because it |
| fired, or laid off. The exception is if you | | | | will not be cheap. Since group insurance is |
| were extremely negligent in your duties, or | | | | usually much less expensive, you may be |
| performed some act of misconduct that got you | | | | surprised at just how much the employer was |
| fired. | | | | paying. |
| | | | |
| Other qualifying situations may occur in the | | | | The Coverage |
| event of a divorce or the death of the | | | | |
| employee. Sometimes there may also be a | | | | One of the great benefits of using the COBRA |
| separation involved, or the employee may | | | | health insurance coverage is that there most |
| retire, or go on Medicare. In cases like this | | | | likely will not be any preexisting conditions |
| the coverage may be extended for periods up | | | | given since you were already covered before. |
| to 36 months. One situation, however, where | | | | This means that your coverage continues |
| coverage will not be given, is in the event | | | | without any hitches; hopefully, and you can |
| that the company goes out of business. In | | | | then continue to enjoy what you had before. |