COBRA - COBRA TABLE OF CONTENTS What is COBRA? What does...

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COBRA
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TABLE OF CONTENTS What is COBRA? What does COBRA do? History Provisions of COBRA Eligibility and Qualifying Events Paying for COBRA Federal government’s role Is it effective?
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WHAT IS COBRA ? Consolidated Omnibus Budget Reconciliation Act Enacted into law in 1986 COBRA offers health insurance policies to certain individuals who have lost their health coverage due to certain specified conditions.
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WHAT IS COBRA? cont. The law amends the Employee Retirement Income Security Act (ERISA), the Internal Revenue Code and the Public Health Service Act to assure that all individuals and their families have access to group medical insurance. It applies to plans in the private sector and those sponsored by state and local governments The law does not apply to plans sponsored by the Federal government and certain church- related organizations.
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WHAT DOES COBRA DO? COBRA insurance enables qualified, recently separated employees to continue their group coverage by assuming responsibility for the total premium (plus a 2% administrative fee) for their coverage. Coverage is only available when coverage is lost due to certain specific events. Group health coverage for COBRA participants is usually more expensive than health coverage for active employees Active employees - employer pays a part of the premium COBRA participants- generally pay the entire premium themselves.
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HISTORY Before 1986 group health coverage was available only to full-time workers and their families. That changed in April of 1986 with the passage of health benefit provisions in the Consolidated Omnibus Budget Reconciliation Act (COBRA). Now, terminated employees or those who lose coverage because of reduced work hours may be able to buy group coverage for themselves and their families for limited periods of time. Provisions of COBRA covering state and local government plans are
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This note was uploaded on 04/07/2008 for the course PAS 3301 taught by Professor Dhing during the Fall '08 term at St. Johns Duplicate.

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COBRA - COBRA TABLE OF CONTENTS What is COBRA? What does...

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