COBRA Insurance Plans

You may have heard the acronym COBRA before, but have never really had to bother with learning what it means or how it may apply to you. However, this is a term with which you should familiarize yourself, especially if your health care plan will be terminated in the near future.

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, was passed in 1986 in order to protect the health benefits of workers and their families if they lose their health benefits. It enables families to purchase a group coverage plan, typically at a higher rate than the plan had cost when the policy holder was actively employed.

How do I qualify for COBRA?

There are a number of reasons why you or your family members may lose health benefits. If any of the following events happen to you, your spouse, or any of your dependents, then you may lose health coverage and will be allowed to purchase a COBRA plan:

• Terminating your employment – voluntary or involuntary – for any reason other than gross misconduct
• Drop in your number of work hours
• Divorce or annulment of a marriage (spouse)
• You become eligible for and entitled to Medicare (dependent and spouse)
• Loss of dependent status (dependent)
• Should you happen to lose your life (dependent and spouse)

The above are all considered to be qualifying factors for the purchase of a COBRA plan.

Contact Us

If you would like to learn more about purchasing a California health insurance plan within your price range, contact Catherine Michaels Insurance Services today by calling 888-875-9888.