If you carry health insurance through your employer and you leave the job can you continue your health coverage benefits? The answer is yes. In 1986 Congress passed the landmark Consolidated Omnibus Budge Reconciliation Act (COBRA) health benefit provision. This law provides for the continuation of group health coverage that otherwise would be terminated. COBRA insurance gives former employees, retirees, spouses and dependent children the right to temporary continuation of health coverage at group rates. This COBRA coverage, however, is only available in specific instances.
COBRA health insurance is usually more expensive than health coverage for active employees, since the employer, in most cases, was paying a portion of the premium. It is, by way of comparison less expensive than an individual plan that you find elsewhere. It is important to check all your options before deciding on which insurance plan is best for you. The following medical benefits may be included in the terms of your COBRA plan:
- Inpatient and outpatient hospital care
- Physician care
- Surgery and other major medical benefits
- Prescription drugs
- Other medical benefits, such as dental and vision.
- Life insurance, however, is NOT covered under COBRA.
When you end employment and also choose to end your health benefits- instead of continuing them with a COBRA plan- you run the risk of not being covered on the next plan you sign up for, due to pre-existing condition clauses. The longer you go without health care the higher the risks. Check with your state insurance laws to determine the time frame in which you must pick up other insurance coverage in order for pre-existing health issues to be covered. Some of the reasons you might decide to continue with COBRA health care insurance are:
- You have had comprehensive benefits and wish to continue them, even if you have to pay more for them.
- You want continual, guaranteed coverage at a higher cost.
- You have had recent health problems and need continuous health insurance coverage.
- You have ongoing health problems.
- You are taking expensive medications.
- You have been declined recently when applying for private or individual insurance.
- You have a history of medical problems.
- You have recently had an accident.
- You are pregnant or planning to get pregnant.
- Your new job doesn’t offer health insurance benefits.
