What is COBRA continuation health coverage?
Congress passed the landmark Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit provisions in 1986. The law amends the Employee Retirement Income Security Act, the Internal Revenue Code and the Public Health Service Act to provide continuation of group health coverage that otherwise might be terminated.
What does COBRA do?
COBRA provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates. This coverage, however, is only available when coverage is lost due to certain specific events. Group health coverage for COBRA participants is usually more expensive than health coverage for active employees, since usually the employer pays a part of the premium for active employees while COBRA participants generally pay the entire premium themselves. It is ordinarily less expensive, though, than individual health coverage.
As healthcare requirements continue to change, it’s important to know that you’re in compliance with legal regulation. If you’d like help sorting through what is required of you, please give us a call at (229) 247-6411, and our friendly, knowledgeable agents will be happy to help!
For more information, contact your Taylor Insurance Services agent. Don’t have a Taylor Agent yet? We’d love to get you connected. Call (229) 247-6411.