Impact of ACA on COBRA. 
 
Many people are confused about the cost of COBRA and how it has been affected by the Affordable Care Act.  To understand the cost, it is important to know that the cost gap between employer-based and individual coverage has closed dramatically since 2009.  Because group coverage has always been guaranteed issue, rates were typically higher on a group plan than they were if you could qualify for individual coverage.  Then, a 1% administrative fee was added for COBRA administration.

Since individual rates are higher than they were in 2009, it is important to shop for coverage and to know the cost of both COBRA coverage and individual coverage before making a coverage selection.  It may be to  your advantage to continue COBRA for 18 months. For more information about making that choice, contact Lucy Grosz at 614-889-0934.

Is COBRA dead?

Did the ACA kill COBRA?  Read here to find out:  Is COBRA dead? https://www.linkedin.com/today/post/article/20140725131219-3234008-is-cobra-dead

Will COBRA survive Health Care Reform?

The election of COBRA benefits has been a big help to many people who are losing their employer benefits. Will COBRA survive Health Care Reform? Yes, it is very likely. With costs rising for individual coverage, COBRA may offer people a way to postpone the high cost of purchasing coverage on their own. Health Insurance rates in large groups can be lower than individual coverage, even when the 2% administrative fee is added to the premium. Of course, it depends on the composition of the group and the insurance plan in place. It is worth doing your homework when you lose your employer coverage, especially with all of the changes occurring in the health insurance industry. To learn more, contact me at lucy@altavistaben.com.

COBRA Elections

Recently, we were made aware that COBRA benefits can be bundled by the employer. That means that it could be an "all or nothing" choice of benefits (medical, dental and vision), depending on how the employer chooses to implement COBRA. Employees should always ask their former employer about this to make sure they understand the choices they have if electing COBRA.

Do I have to elect benefits under COBRA

No. Many times, shopping the open market is a much better option than choosing COBRA. Rates can be significantly less, especially with healthy families. In addition, the open market provides the option of selecting from multiple carriers – increasing the opportunity to find an affordable option to COBRA. In addition, some of the plans available today have tax advantages that may not be available with group health plans.

How do I qualify for COBRA?

COBRA is available from employers offering group insurance who employ 20 or more people. The election period is the 60 days, beginning after the last day of group coverage. Benefits under COBRA generally last up to 18 months.

For an employee to qualify for COBRA, there must be a reduction in hours or a termination -- either voluntary or involuntary. Spouses and dependents can also qualify if the employee is entitled to Medicare and receives benefits, in the event of the employee's death, or due to a divorce or legal separation.

Who is eligible for COBRA?

Who is eligible?

Family members who are considered “qualified beneficiaries” include the covered employee, spouse, dependent and children – even adopted children. Each qualified beneficiary has individual rights to make a choice about continuation of their health benefits. This means that COBRA can be used as an option for all or part of the family.