Laws Pertaining to Continuation of Coverage
One of the significant benefits of being employed tends to be the health care coverage that comes with it. If you were to get laid off and you liked the coverage that was provided by your employer, you can choose to stick with it for up to 18 months or until you find a new job with benefits. Under COBRA, your employer is not responsible for paying the cost of providing continuation of coverage. The premium plus a 2% administrative charge must be paid on a timely basis in order to continue the health insurance that you enjoyed under your employer.
Ways to Lose Coverage
With the current state of the economy, the concern is that your employer may go out of business. In this case, continuation of coverage is unavailable to the employees and their dependents if the company shuts down. Similarly, if the employer decides to terminate the plan for all employees, the benefits will not be available for employees and their dependents under COBRA law. The most common way to lose coverage is to make late payments on your monthly premiums and just like anything else in life, if payment is consistently late-your employers are required to notify employees and dependents in writing 15 days prior to coverage termination.
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COBRA Qualifications
In order to qualify for COBRA, you must be employed at a company with approximately 20 full-time employees. If you are a dependent and decide to get divorced from your spouse, you will no longer be eligible for benefits following the divorce proceedings. As long as you are able to afford to pay the premiums for COBRA coverage until you find your next job with benefits, you will be in good hands while you are looking for your next place of employment.