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With over 76 years of experience, The Jordan Insurance Group is an industry leader in Life Insurance strategies and Employee Benefits. We strive for excellence through our due diligence in selecting products to satisfy our clients’ needs with proven benefit designs and tax strategies. Our Team utilizes a diversified multi-level approach in preserving, protecting and growing wealth for our business and individual clients.
COBRA Explained
COBRA -- which stands for Consolidated Omnibus Budget Reconciliation Act of 1986 -- provides employees with valuable insurance coverage benefits that not everyone understands. Your understanding of this complex issue, however, could make the difference between having a medical condition covered continuously and scrambling for medicine or a doctor if a crisis or flare-up from said condition should hit. COBRA is for Everyone COBRA provides a method of keeping health insurance in one smooth motion. Unless you are young and very healthy, being without health insurance could be a disaster waiting to happen. Even if you are young and healthy, though, you should consider taking advantage of COBRA in the event that something occurs while you are without insurance. COBRA and Eligibility If you have been laid off from a job, you could be eligible for coverage under COBRA. COBRA allows you to keep your health insurance coverage without expensive gaps that allow some insurance companies to deny you coverage due to a pre-existing condition. Additionally, it protects you from the potential of being financially ruined due to staggering medical bills. Portability Rights Under COBRA Those pre-existing conditions have been used by insurance companies in the past to deny coverage. With COBRA comes portability rights. These rights allow you to carry your health insurance from your employer to a new employer without a break. In between those jobs, though, COBRA enables you to make payments to keep your coverage current. What happens if you do not find a new job that provides insurance? By enrolling in COBRA -- and staying enrolled -- for 18 months as allowed by law, you then have 63 days to find new health insurance coverage. Typically, if you do both of these steps -- stay on COBRA for 18 months and purchase a policy within 63 days -- any company must provide such coverage to you regardless of your pre-existing conditions. There are some exceptions, of course, and you could be funneled into a high-risk pool of applicants.
William Jordan
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