| If you lose your job in Dallas, one of the many | | | | employees or fewer) that is exempt from federal |
| questions you'll have is: "Will I lose my health | | | | law, you might not be completely out of luck. |
| coverage, too?" If you're an employee at a | | | | Many states have adopted their own laws, |
| company that has 20 or more employees, and | | | | sometimes known as "mini-COBRA," that often |
| you leave your group plan for reasons other than | | | | grant broader rights in determining coverage |
| gross negligence, then you'll be offered COBRA | | | | eligibility. |
| continuation coverage. | | | | If your employer has more than 20 workers, but |
| This federal law, known as COBRA (Consolidated | | | | doesn't offer health coverage, or offers coverage |
| Omnibus Budget Reconciliation Act of 1985), fills | | | | only to certain groups of employees and you're |
| that important gap for health insurance plans for | | | | not one of them, you won't be eligible for COBRA |
| qualified workers, their spouses, and their | | | | even if one of the qualifying events occurs. That |
| dependent children so their health insurance does | | | | ineligibility will include your spouse or children. |
| not have to stop when they leave their job. | | | | Additionally, if your former employer changes its |
| Under COBRA, if you voluntarily resign or are | | | | health insurance plan for its current employees, |
| terminated for any reason other than "gross | | | | you are entitled to receive benefits under the |
| misconduct," you are guaranteed the right to | | | | new plan, although the benefits may change. If |
| continue your former employer's group plan for | | | | your employer switches plans, you won't be able |
| individual or family health insurance for up to 18 | | | | to keep the old plan. |
| months at your own expense. In most cases, | | | | And if your former employer offers separate |
| spouses and dependent children are also eligible | | | | health insurance plans (dental, medical, and vision, |
| for COBRA coverage, for sometimes up to three | | | | for example), you and each of your qualified |
| years. However, individual plans - plans you | | | | family members may choose to continue any |
| purchase on your own, rather than through work | | | | combination under COBRA. However, if your |
| or an association - are not subject to COBRA | | | | employer sponsors one plan with multiple health |
| laws, and once you lose that coverage, you won't | | | | insurance benefits, you must each elect all the |
| be able to get an extension under COBRA. | | | | benefits or nothing. |
| If offered, should you elect the COBRA | | | | But eligibility isn't the only issue to consider when it |
| continuation coverage option? If you or your | | | | comes to COBRA. Cost is a major consideration, |
| family has major health issues, then yes. If you | | | | too. If you have no pre-existing conditions and |
| and your family are relatively healthy, then it's | | | | decide against COBRA, you should consider buying |
| wise to compare individual health insurance plans, | | | | individual insurance or even a short-term major |
| as individual rates are likely to be half the cost of | | | | medical policy to tide you over until you land a |
| a comparable COBRA group health insurance | | | | new job with health benefits. |
| premium or even less. | | | | The following health plans are subject to COBRA: |
| Group health coverage for COBRA participants is | | | | Medical plans. |
| usually more expensive than health coverage for | | | | Dental, vision, and prescription drug plans. |
| active employees because the employer usually | | | | Drug and alcohol treatment programs. |
| pays a part of the premium for active | | | | Employee Assistance Plans, known as EAPs, which |
| employees, while COBRA participants generally | | | | provide medical care such as counseling or |
| pay the entire premium themselves. | | | | psychological treatment. |
| In addition, keep in mind that one major | | | | On-site health care, including discount or free |
| difference between individual and group health | | | | medical services. |
| plans is maternity coverage. With individual health | | | | Section 125 spending arrangements, also known |
| plans, that coverage, if offered at all, is extra, | | | | as cafeteria plans, under certain circumstances. |
| while most group plans include maternity | | | | The following benefits are not subject to COBRA: |
| coverage. So, if you need maternity coverage, | | | | Wellness programs. |
| you should compare COBRA rates with the rates | | | | Life, disability, and long term care insurance plans, |
| offered through an individual plan with maternity | | | | and medical savings accounts. |
| coverage. | | | | EAPs that do not provide medical care. |
| If you forgo COBRA, any of your qualified family | | | | If you become unemployed, and even if your |
| members may elect to continue their health | | | | employer offers COBRA, you should also take a |
| insurance benefits under your former employer's | | | | look at the revolutionary comprehensive individual |
| plan. And your spouse or any of your children | | | | health insurance solutions created by Precedent |
| may enroll in COBRA independent of your COBRA | | | | specifically for young, healthy individuals. The cost |
| election decision. | | | | difference between COBRA and an individual |
| Even if you work at a small company (20 | | | | policy might be the deciding factor. |