COBRA: it's something nearly everyone has heard of, hardly anyone
really understands, and just about everyone is qualified for. This
article will explain what COBRA is, who is qualified for it, and what
the benefits (as well as the downfalls) of participating in this
government-sponsored program are.
What is
COBRA?
You’ve heard of
it around the water cooler or in your orientation class, and you know enough to
realize that when your Human Resource representative refers to COBRA that they aren’t talking
about either a snake or a mid-80s Sylvester Stallone movie. Or you may be at
the end of your run at your current job, and COBRA is brought up in your exit
interview. However you hear about it, COBRA is something you need to know
about. It’s a benefit that most working folk are entitled to but few may
understand.
First, what
COBRA is not: It is not insurance. You may have heard people refer to it as
‘COBRA Insurance,’ but this is a mistake: COBRA (Consolidated Omnibus Budget
Reconciliation Act) is a law, a group of health regulations that was passed by
Congress in 1986, amending the Employee Retirement Income Security Act,
the Internal Revenue Code, and the Public Health Service Act, to provide for
continuation of group health insurance for those who qualify and have lost
coverage.
Don’t be
overwhelmed with all the official names and various Acts. The important thing
is to have a good grasp of what COBRA is, how it can benefit you, and how to
decide if it’s right for you. Many working Americans today site job security as
one of the top reasons they stay with the job they have—and they are not just
referring to their paycheck. Those same people have only experienced health
care provided by their employer at group rates and would feel vulnerable if
they suddenly lost their jobs—and their health benefits.