Most people are surprised to see how COBRA health insurance can be too expensive. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. This health insurance is passed by the United States Department of Labor which gives individuals the right to receive health benefit plans and to continue receiving them for up to 18 months after they are laid off from their jobs and they are unable to find a new one. This must be the reason why this insurance can be too costly. Aside from the full payment, you also get to pay the 2 percent administrative costs. However, the COBRA Stimulus bill can help you pay this amount through the subsidy of the US government which usually amounts up to 65 percent of the premiums.
Qualifying for the COBRA health insurance involves losing the health benefits you get from your current employer. This happens when your employer reduced your working hours or your company or group has a recent downsizing. But take note, those employees who are terminated because of bad conduct are not qualified to receive this kind of health plan. Also, if you have just turned to 22, you are qualified to this plan since you are already officially declared independent from your parents and are not covered in the health plan your parents are able to provide you for the last twenty one years. These requirements are simply manageable if you really want to apply for this health plan.
The qualified beneficiaries are expected to have the same health benefits package they are able to receive from their previous health benefits package. This package may include hospitalization, medical or dental consultations. COBRA health insurance gives you this special privilege. Though it can be expensive, you are able to have quality health benefits. You can be sure that your money is not put to waste.
But since most people cannot pay these extensive monthly bills, COBRA health insurance has come up with a benefit plan that is less costly. This plan is a temporary insurance. This health plan covers up to 12 months. You can have access to those benefits similar to a fully-covered health insurance with this plan. This can be the very option of those people who do not have permanent job or just have graduated from school. COBRA wants you to value your health without being a burden to you.