A Cobra Insurance normally pertains to your health insurance that allows you to pay for your current insurance at a discounted rate. This sometimes can be expensive because you may be required to pay both your and your employers’ costs. Right now, because of the Coronavirus Pandemic, many people are being left without jobs because they work for a company that is classified as a non-essential company. Meaning it does not supply food, medical or anything that is required right now for survival. This has put many families at a hardship including costing many to lose their families health insurance.
This is a bad scenario for someone that has a family member with a chronic illness or if someone in the family would happen to get the Coronavirus. Many people get no notice that their company has to close it doors until the Pandemic is over. With someone in their family needing insurance, this can be one of the quickest ways to guarantee that their family will continue to receive the medical care that they need.
To select a new Health Insurance Plan would many times mean that the person needing medical care may not be covered for the pre-existing condition that they have. Most companies will pick up the coverage after an extended period of set time. During that time frame though, you would be responsible for the medical treatment for that condition until the waiting period is over. Unfortunately, chronic conditions and other already diagnosed conditions are not paid for under your new plan in the beginning.
Any employer that has at least 20 employees that offers a health insurance plan must offer a Cobra plan to their employees. So, if your company closes its door or lets you go you have the right to purchase the Cobra plan and keep your current insurance for up to 18 months to avoid any break in insurance coverage. This keeps your family protected and allows members with pre-existing conditions to continue their medical care while you figure out what you are going to do to provide another insurance coverage for your family.
Your employer must notify the insurance company of the changes within 30 days and they have 14 days to send you out a letter, notifying you about your option to continue your insurance coverage. They will tell you what your costs are and the date that you must have a payment into them. Remember that it will be higher than what you were paying as an employee, but it will still be at a group rate and will continue your already existing coverage. You will need to send in your selection and have 45 days to make your Cobra payment. As long as you keep your payments made and follow the restrictions for your Cobra policy you will have insurance coverage equal to the same that you had for you and your family when you were working, for up to 18 months.