Continuing Health Insurance After a Job Loss
The Consolidated Omnibus Budget Reconciliation Act, known as COBRA, is a federal law that allows employees to continue their employer-provided health insurance after they are laid off or fired, or they otherwise become ineligible for benefits.
For example, because they quit or their hours are reduced below the employer’s minimum to receive benefits.
The employee has to pay the full premium at the employer-negotiated group rate, which is typically less expensive than it would be to buy an individual policy on the open market.
The administrator of your employer’s health care plan is required to send you a set of notices about your right to COBRA benefits.
Once a qualifying event takes place, either the employer or the employee must notify the plan administrator (who is responsible for giving notice depends on the type of event).
After learning of a qualifying event, the administrator must send out an election notice, informing beneficiaries that they have a right to choose COBRA coverage. Beneficiaries then have 60 days to inform the administrator whether or not they want to continue insurance coverage through COBRA.
David Payab, Esq. from The Law Offices of Payab & Associates can be reached @ (818) 918-5522 or by visiting http://payablaw.com
