If you are unemployed, COBRA can give you temporary health insurance while you search for a new job. Understanding how COBRA works and what it means, will help you decide if it is right for you. In general, COBRA insures you during a period of time when you are unemployed and is generally considered a very affordable type of health insurance compared to health insurance offered through private companies.
For some people COBRA may be their only option. This is because COBRA plans do not offer any kind of individual medical benefits like most private health insurance plans do. COBRA also does not cover pre-existing conditions. Unlike other types of insurance, COBRA plans can be canceled if you are not insured for a specific period of time. Even though COBRA costs more than traditional health plans, people who have poor health care histories can benefit from this less costly plan.
When an individual loses their job, they generally have several months before they can start looking for a new job. During this time many people experience health issues and accidents that might affect their ability to work. Many employers offer short term disability insurance but finding the right employer that offers this coverage can be difficult. If you lose your job during the transitional period and are not insured under COBRA, you will probably have to purchase COBRA coverage on your own.
Some people choose COBRA because they believe that they cannot afford to purchase group insurance. The reality is that COBRA will cost you a lot less than most employer-based plans. When you reach the age of 60 and are unemployed, COBRA becomes available to you and your dependent child. The premiums are based on an age, rather than an occupation. You pay the same premium no matter what your age is. The costs also vary significantly by insurer so shop around for the best rate.
Another reason that people select COBRA for their individual health insurance needs is that COBRA does not cover pre-existing conditions. This includes being pregnant, being a dependent of someone who is unemployed or self-employed, or suffering from a serious illness. COBRA also has different options for how long you can be covered under the plan. You could be out of luck if you suffer from a pre-existing condition.
When it comes to COBRA health insurance, there is also a lot of confusion regarding COBRA claims. If you suffer an injury while at work, you are entitled to compensation. However, COBRA only compensates an employee for an “injury” if the injury was caused by an employer’s negligence. To make matters even more confusing, COBRA allows employers to be sued even if they are not responsible for an employee’s injury. This is the main reason that COBRA is a good choice for an employer if you are planning on filing a claim against an employer who is well-insured.
There are several other circumstances in which you may qualify for COBRA health insurance coverage. If you suffer an injury at work due to an accident, or if an employee is injured while at work, you may qualify for COBRA. Also, if you are a member of a specified group that is exempt from income tax because of your employer’s status as a small business, or if you are a senior citizen working in a nursing home or convalescent center, or if you are a member of the military, you may qualify for COBRA benefits. So, if you fit any of these situations, you may want to speak with an insurance agent to find out exactly what your eligibility requirements are.
Once you know if you can be covered under COBRA health insurance in your state, you need to find out what your COBRA premiums will be. Once again, COBRA health insurance does have a limit on the premium for this type of insurance, and you will likely have to pay more than if you were working without this type of insurance. The average monthly premium for COBRA health coverage is about $15 per month. However, it is possible to save money on COBRA health coverage by making a few policy changes.
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