In the tense environment of today, the need for health insurance plans is felt more and more. Due to degrading economy of the countries all over the world, people are losing their jobs and so tension is rising. Therefore, health insurance is certainly an option. Many companies around the world offer health insurance plans among which COBRA health insurance is a well renowned name.
COBRA health insurance is particularly useful for those people who are retired and their previous health insurance package has expired. COBRA is basically an abbreviation of Consolidated Omnibus Budget Reconciliation Act and it was put into action in 1986.
There are certain qualifications that have to be met if the health coverage under COBRA is to be sustained. First requirement to receive the coverage is that the employer for which the beneficiary works must have at least 20 employees on at least 50 % working days in the previous year. Second requirement for the beneficiary is that either he himself is an employee or is the spouse or dependant child of the employee. Another factor which may also prove a person deserving is that he recently lost his employment but that loss should not be the result of misconduct in the job. A person who is forced to work limited number of hours due to lack of part time jobs or because his employer has reduced his working hours can also apply for this insurance.
There is also time restriction associated with this insurance plan. Once a person meets all the requirements of a beneficiary he will have 60 days to decide on whether he wants to continue with the current insurance plan or whether he wants to go for some other group insurance health plan. The employer also has 30 days to tell the health plan administrators if the person in question does not qualify to avail the plan. The good thing is that once the plan begins then the person can continue availing the services of COBRA for 18 whole months.
COBRA health Insurance plan is quite costly. Its expensive coverage can be recognized from the fact that the person availing the benefits has to pay 150 % of the premiums he did before qualifying for the plan. In fact, there is no particular advantage of availing COBRA health insurance plan as it offers the same benefits as employer based group insurance plan. Therefore, you should look for your own health insurance plans instead of seeking the coverage offered by COBRA health insurance.
If a person is healthy and hale then he should look for alternatives to COBRA health insurance in the market. Then he will be in good position to compare the coverage offered by various companies who offer health insurance plans. The person should opt for that plan which not only offers a relatively larger coverage but also is reasonably inexpensive because in this era of increasing inflation saving money is perhaps the most important thing as money is the guarantee of your safe future.
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