Are You Entitled to COBRA Health Insurance?

The Consolidated Omnibus Budget Reconciliation Act of 1985, also known as the COBRA health insurance coverage has, for many, corrected some of the injustices and limitations of the American insurance system. Unfortunately, for some critics, it hasn't done enough for the workers of America. But, what is health insurance COBRA, exactly, and how can it benefit you? Let's find out more about this Act and the consequences that it has brought to our economy.

What Is COBRA Health Insurance?

The COBRA health insurance is a law that was passed by the United State Congress in 1985, in order to correct some inconsistencies of the system. The idea behind this law was to permit former employees, and their immediate family members, to continue using the health insurance provided by the employer.

It must be mentioned that it wasn't an easy task. This Act corrected several legal papers within the government administration, like the Employee Retirement Income Security Act, the Internal Revenue Code and the Public Health Service Act.

Are You Entitled to COBRA Health Insurance?

Not everyone is entitled to use the COBRA health insurance plans. The main limitation is that the person interested in using it must have gone through a "qualifying event". A "qualifying event" is a term used for describing determined types of situations. The first one is the death of the employee that was covered by the insurance. This is a very important amendment since it doesn't leave his family unprotected from an uneventful situation.

The second requirement for using COBRA is a reduction in working hours that may bring, as a consequence, the lose of the coverage. This reduction can be generated by a series of events. For example, a strike, medical leave, discharge, resignation, even the downfall of the company (this last event is very important since many companies used this trick to cancel the insurance policies of their employees, "saving" millions of dollars).

Other requirement for accessing COBRA is divorce, or the termination of the conjugal society. Usually, this kind of legal separation leaved the other part unprotected. In the majority of situations, women were the ones who suffered from this situation. In order to correct this misbalance, ex-spouses can access the health insurance through the COBRA Act.

Dependant child's are also beneficiaries of the COBRA health insurance. For example, let's say that your child is reaching the majority of age. May he continue to use your health insurance plan after he has become an adult? Before the COBRA health insurance coverage, no, he had to buy a separate health insurance plan. But thanks to COBRA, your children may be able to use it.

Continue to: Benefits of COBRA Health Insurance

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