Author: Joseph Kenny

In this day when companies are facing layoffs, buyouts, and other
financial difficulties, it may be difficult to hold on to a good
health insurance policy. Thanks to the government, however, there
has been a couple of programs that will allow you to keep the same
coverage you had before your situation changed - if you act soon
enough. Here are some things you need to know about the COBRA
program that could enable you to enjoy the same health insurance
coverage you had.

COBRA, which stands for the Consolidated Omnibus Budget
Reconciliation Act, enables you to keep the same coverage for up to
18 months. In some cases, this time period may be extended for an
even longer period of time for dependents.

Qualifying Events

In order to qualify for this program, participants have to meet
certain qualifications. The good news is that the conditions for
COBRA are rather lenient. If you were an employee, and are now out
of work, you may qualify - even if you were fired, or laid off. The
exception is if you were extremely negligent in your duties, or
performed some act of misconduct that got you fired.

Other qualifying situations may occur in the event of a divorce or
the death of the employee. Sometimes there may also be a separation
involved, or the employee may retire, or go on Medicare. In cases
like this the coverage may be extended for periods up to 36 months.
One situation, however, where coverage will not be given, is in the
event that the company goes out of business. In that event, though,
you may still be able to get your health insurance coverage through
HIPAA.

Application Time Is Limited

After a qualifying event occurs, you need to act rather fast
because there is not a lot of time given in which you need to apply
for the COBRA program. You must act within 30 days of the event by
informing the insurance plan administrator (the employer) of your
intent to continue the coverage. It is best that you do it in
writing - for your own records. After you notify them, they will
send you a letter within 14 days, and then you have up to 60 days
to decide if you will accept the COBRA coverage.

The Premiums

While you are able to continue the coverage that you had prior to
the event, there is a major difference that also takes place.
Whereas the employer paid a part of the premiums previously - now
it becomes entirely up to you to meet the full price. So, there may
be a little sticker shock, because it will not be cheap. Since
group insurance is usually much less expensive, you may be
surprised at just how much the employer was paying.

The Coverage

One of the great benefits of using the COBRA health insurance
coverage is that there most likely will not be any preexisting
conditions given since you were already covered before. This means
that your coverage continues without any hitches hopefully, and
you can then continue to enjoy what you had before.

Article Source:
http://www.articlesbase.com/finance-articles/lost-your-job-how-to-keep-your-insurance-coverage-67367.html

About the Author:
Joe Kenny writes for the UK Loans Store for loans in the UK and
offer more information on secured loans in the UK and other loan
topics on site.
Visit Today: http://www.ukpersonalloanstore.co.uk