COBRA insurance

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COBRA insurance

Congress passed the consolidated Omnibus budget reconciliation act(COBRA) health benefit provisions in 1986. This law means the employee retirement income security act, the Internal Revenue Code and the public health service act to provide continuation of group health coverage that otherwise would be terminated.

Former employees, spouses and dependent children are given certain provisions under COBRA to temporarily continue their coverage at group rates. Only in specific instances, is this coverage available. Health coverage for active employees and definitely less expensive than those participants of COBRA. Usually part of the premium was paid by the former employer. The coverage can be less expensive than individual healthcare.

20 or more employees in the prior year are generally covered under health plans maintained by employers by this law. State and private sector employees also are under this plan. Plan sponsors the federal government and church related groups are not applicable.

Group plans provided by private sector employers are generally for them and subject to its requirements. They are also subject to reporting, fiduciary standards and enforcement. Those sponsored under the guidelines do not establish minimum standards or benefit eligibility for welfare plans. It does require that the plant have rolled out laughing how workers become entitled to benefits.

Under COBRA, ordinarily is a group health plan, defined as a plan that provides medical benefits for the employers, employees and their dependents through an insurance organization. Medical benefits provided under the terms of the plan and/or available to COBRA beneficiaries may include, inpatient and outpatient hospital care. Doctors visits and prescription drugs. Other medical benefits, such as dental and vision care may also may be available.

COBRA insurance is a good short-term insurance option for you and your family. It will help you with covering the gaps in your insurance, if you have been laid off or are between jobs. Also, as a recent college graduate, you could benefit from COBRA insurance. Contact us to see if you could benefit from this type of insurance. catistrophic Health Insurance

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