COBRA which is shorthand for Consolidated Omnibus Budget Reconciliation Act offers workers the opportunity to be paying premiums for the group health assurance and hence retain it so that they do not end up losing in case their works hours are reduced, they lose their jobs or quit their jobs.

It’s a federal law which needs employers having 20 or more works who provide health care benefits to give the choice of perusing this coverage to their workers who would otherwise be deprived their benefits because of reduction in hours, termination of employment or certain other occurrences. 

Benefits That Are Covered

The following kinds of plans generally require to be provided to workers when COBRA is activated:

• Health care pans

• Alcohol and drug abuse plans

• Prescription drug plans

• Mental health plans

• Dental plans

• Vision plans

Some of the Events that Trigger COBRA

1. An employee’s involuntary or voluntary termination of employment, expect for gross misconduct

2. An employee’s depletion in hours of paid work

3. A worker’s entitlement to Medicare

4. A worker’s death

Pros Associated With COBRA Insurance Coverage

#1:You Will Not Have to Look for a New Health Cover

Having COBRA insurance coverage means you will not require looking for another health cover which can be hard to find if you have critical medical requirements.

#2: The Factors Defining COBRA Insurance Coverage Never Change

The procedure involved in filling claims, utilizing your insurance, or the other health insurance regulations do not change. 

#3: Assurance of Coverage When the Need Arises

If you are having a pre-existing health situation, you do not require worrying since you will not be denied coverage. 

Cons of COBRA 

If your firm cancels their plan or ceases its operations, this will make you lose your coverage. 

Why You Should Hire a Lawyer When Your Rights as an Employee are Violated

If you feel your COBRA insurance coverage rights are being violated such as your employer making changes that are likely to make you lose the coverage, it is vital you consider employing an attorney. Lawyers at UELG i.e. United Employment Law Group will represent you in court when the need arises and ensure they handle all the activities involved in your matter till you emerge a victor in your case of concern.

Our law firm UELG has well- trained lawyers and thus qualified to deliver great solutions when helping employees that feel uncomfortable with the decisions of their employers. 

Bottom Line

For more details about COBRA or how you can connect with us when the need arises, kindly make sure you call us soon for a consultation and quote on the services we offer. 

Photo Credit: Shutterstock/S_L

The post What You Need to Know About COBRA appeared first on UELG.

Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that concerns group health plans and employers that cover 20 or more employees. Its main objective is to preserve your group health plan in case your job ends or your hours are reduced.

Frequently Asked Questions (FAQs) About COBRA

Who is Eligible for COBRA?

Coverage is applicable for employees that are under an employer’s health care plan a day prior to a qualifying event. The employer in this case usually has 20 or more employees.

What is a Qualifying Event?

A qualifying event simply means loss of your health plan as a result of:

• End of your job.
• A cut in employee’s hours.
• Divorce or legal separation from the employee.
• You cease to be a dependent of an employee.
• Death of an employee.
• Eligibility of employee for Medicare.

How Do I Sign Up for COBRA?

First, you should receive a notice in the mail regarding your rights. After notification, you have a period of 60 days to sign up for COBRA. In case you fail to receive a notice in the mail, contact your health plan or last employer immediately. Afterwards, fill the forms required. If you are having problems accessing the forms, call the Help Center. Remember to stick to the deadline given to sign up for COBRA. Otherwise, you will lose the chance to do so. Besides, ensure you do the following:

• Send the enrollment form before the stipulated deadline.
• Send the enrollment form to the right place.
• Pay the correct premium amount.
• Pay the first premium within a period of 45 days after sending the enrollment form.

What is Cal-COBRA?

Cal-COBRA stands for California Continuation Benefits Replacement Act. It is applicable where employers and group health plans cover 2 to 19 employees. It allows a person to keep their plan for a maximum period of 36 months.
Cal-COBRA also applies to people who use up their COBRA. After 18 months of your COBRA are over, you can keep your health plan for 18 months under Cal-COBRA.

What Benefits Do I Have Under COBRA and Cal-COBRA

• You are entitled to benefits similar to other employees covered by the same health plan.
• If open enrollment periods apply to other employees with respect to changing from one plan to another, you can also do so.
• In case employees are changed from one health plan to another by the employer, you change plans as well.

When Do COBRA and Cal-Cobra End?

Cobra will end if:

• You use the 36 months. It can either be 36 months under Cal-COBRA entirely or 18 months under COBRA and 18 months under Cal-COBRA.
• You fail to pay premiums on time.
• The employer ceases to offer any health plan.
• You become eligible or enroll in Medicare.
• You decide to enroll for a different health plan.
  

  ---

  Photo Credit: Shutterstock/S_L

The post Understanding COBRA in California appeared first on UELG.

If you lose your coverage on health insurance, it’s important to observe the Consolidated Omnibus Budget Reconciliation Act (known more commonly by the acronym COBRA.) This is important in case of a qualifying event, you may end up losing your cover and it’s important to seek COBRA intervention for the sake of restoring it. One of the common mistakes that most people make is to fail to send notices in advance as it’s required by the law.

Similar Coverage for Employees That Are Active

The COBRA health insurance states that the coverage for those in it should be similar in terms of various factors. They should include deductibles, terms of benefits and the coverage limits. Whenever there is a change in these factors, it should reflect all the participants. These changes will also include the termination of the plan; not just the deductibles and the benefits.

This is also applicable when the person who is covered chooses to include other participants in the insurance cover. Every qualified beneficiary should be included whenever the notices are sent to all employees.

What Are Health Plans Covered in COBRA?

As per the Consolidated Omnibus Budget Reconciliation Act, it will state whether the group will be included in the plan or not. Special consideration will be taken into account to determine when the cover will be applicable to a specific employee or not. A person’s region or the Medical Spending Accounts could be used to factor out this.

Employers Who Are Under COBRA

The Consolidated Omnibus Budget Reconciliation insurance plan is applicable to those employers who have employed more than 20 people. The major challenge here in determining which employee can qualify is whether one is employed on either part or full time. The employer acquiring another business can also be a challenge. How about determining the change in the workforce?

You can be eligible for COBRA insurance plan in the event of the following:

• Retirement Status
• Reason for Termination
• Divorce and Remarriage
• Medicare Entitlement

According to the act, the employer is supposed to send several COBRA notices if there is a qualifying event for the employees. They should also send the employees notices in case they aren’t eligible. The administrator of the COBRA insurance plan should also be notified regarding the qualifying event. The last but not the least is that the employees should also notify their employers when there is such an event.

Photo Credit: Shutterstock/S_L

The post A Quick Look on Consolidated Omnibus Budget Reconciliation Act appeared first on UELG.

COBRA – known as Consolidated Omnibus Budget Reconciliation Act in full – is an act of law that helps those who have already left employment to continue receiving health insurance coverage. The law is generally crucial to those who may want to safeguard their financial and health security even after leaving a job or losing an employed spouse. When one opts to continue with COBRA they don’t have to pick a new plan or transfer medical records. However, there are few basics and requirements in order for one to avail these benefits.

Eligibility Criteria

To qualify for COBRA, one must satisfy several requirements. First, one’s current health plan must be subject to COBRA law. It’s important to note that not all health cover plans are eligible. Another requirement to take note of is that one must be considered a qualified beneficiary in their existing health plan in order to qualify. A qualified beneficiary can be an employee of the sponsoring health plan, spouse, dependent or agent/director (that participated in a health plan) or a retired employee who lost their job as a result of an employer going bankrupt. Lastly, one must have a “qualifying event”. A qualifying event can be: when one is laid off, quits, gets fired, gets terminated or still employed but working hours are reduced causing a loss of health insurance benefits.

How Long It Lasts

An individual may continue enjoying COBRA health-coverage for up-to 18 months. Children or spouses dependent on the employee who become eligible through other reasons other than by employee’s qualifying event can choose to continue the coverage for up-to 36 months – that is if the employee passes on in the course of the 18 months period. In the event the person under the coverage is disabled, COBRA coverage can be lengthened to 36-months.

How It Works

The firm that operates your employer’s health plan is by law supposed to send you several notices concerning your right to receive COBRA cover benefits. Once a qualified event occurs, one is required to enlighten the administrator of the plan. After receiving this notification, the administrator is expected to send-out an election notice to all beneficiaries thereby allowing them 60 days to respond on whether they wish to continue their cover through COBRA or not.

Paying For COBRA  

The employee or any of the beneficiaries are required to pay the entire premium to sustain full benefits of the cover. However, from September 2008 the Congress changed (temporarily) this rule to allow one to pay 65% premium in order to enjoy partial subsidy.

Getting Legal Assistance

Because of COBRA’s extensive paper-work and raft of requirements, it is important to seek assistance from professionals. Sometimes, a simple glitch can interfere with the benefits one is entitled to. In case of doubt, one should consult with a professional employment lawyer for further assistance.

Photo Credit: Shutterstock/Africa Studio

The post Understanding the Consolidated Omnibus Budget Reconciliation Act – Simplified appeared first on UELG.

In the state of California, COBRA i.e. Consolidated Omnibus Budget Reconciliation Act allow workers and their spouses and/ or dependents to continue their group- health insurance coverage even if there is a catastrophe which have occurred and which would otherwise terminate coverage, like the worker getting laid off or his/ her spouse getting divorced. Generally, the benefits that one is supposed to reap from the insurance coverage lasts from one to three years, and it is often determined by the circumstance.

What are the COBRA Basics?

If you’ re an employee and you have been covered by your employer’s group- health insurance plan in California, you are usually allowed to continue with your coverage despite the existence of factors which would otherwise terminate your coverage.

Some of the factors which in most cases are referred as qualifying events that can easily end up terminating your coverage as an employee include; being fired, getting laid off or quitting (for other reasons apart from gross misconduct).

The spouse as well as dependents of the employee can continue their coverage also in case any of the afore- mentioned qualifying events occur. In case the employee dies, he/ she divorce with his or her spouse, he or she qualifies for Medicare, the spouse and dependents become eligible for their coverage.

However, be informed that an employee, his or her dependent or spouse who benefits via COBRA is always required to pay the cost of coverage in full. Be informed also that the cost of coverage is normally less as it would cost to buy an individual insurance policy because in most cases employers often negotiate lower group- health insurance rates.

How Long Does Consolidated Omnibus Budget Reconciliation Act Last?

The qualifying events greatly determine the period of COBRA benefits. Basically, in case the qualifying even happens to be the quitting of the employee, reduction of working hours of an employee or termination of an employee, benefits last for 1 year.

In case the qualifying event is the death of an employee, divorce or the employee or loss of dependent status by the defendant under the plan, COBRA benefits last for three years.

Be informed that COBRA coverage is liable to extension from 18 to 29 months in case the qualifying event is the reduction of hours, quitting or termination of employee. However, in such a scenario, the beneficiary should either have a disability at the time of the qualifying event or he/ she accidentally becomes disabled during the first 60 days of COBRA coverage.

Last, but definitely not least, for more information about how long COBRA benefits last in California, kindly do not hesitate contacting us.

Photo Credit: Shutterstock/Matt A. Cliaborne

The post How Long COBRA Benefits Last in California appeared first on UELG.