Health Care Reimbursement
Mrs. Watson, MBA
July 2, 2013
COBRA also known as Consolidated Omnibus Budget Reconciliation Act passed in 1986. The first and perhaps most important thing to know about COBRA insurance is that it is actually not a health insurance plan at all, it is a law. This protects families who would lose group health coverage because of serious life events by allowing continue their coverage under employee’s group health plan. These events include death, termination, and hour reduction due to anything besides misconduct, divorce, legal separation from current employee. COBRA generally applies to all groups health plans maintained by private sector of at least 20 employees or by state and local government does not include plans sponsored by churches and church related organizations. COBRA requires that continuation coverage be made available for a limited period of time 18 to 36 months. Employers may require the former employee to pay full cost and two percent administrative fee if you entitled to 18 month coverage you may be eligible for extension in two circumstances. First, the qualifying beneficiary is disabled. Disability must be determined by Social Security Administration and within the 60 days of beginning of continued coverage. The plan can charge up to 150 percent of cost during eleven month disability extension. Second when a qualifying event previous listed occurs. Early termination could occur in certain circumstances due to the following occurrences. Premiums not paid in full and in timely basis. Employer ceases to maintain group health plan. A qualified beneficiary begins coverage under another group health plan after electing continuation, as long as that plan doesn’t emphasize an exclusions or limitation affection pre -existing condition of qualified beneficiary. A qualified beneficiary qualifies for Medicare benefits after...
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