COBRA: How to Keep Health Insurance When You Lose Your Job Part 2
You can decide not to use the coverage but you should carefully reconsider that decision. Some individuals who are eligible for COBRA insurance may decide not to take it. This is because they think it is costly and they are planning to get another job that can provide health coverage.
If you are one of these people, you should reconsider your decision. It may take you much longer than you think to get another job. It is also likely that the new job will have a waiting period for you to qualify for the company’s health packages. Throughout this period you are going to be without any health coverage. It will be very bad if you are diagnosed with a severe condition or has and accident within this period.
In addition, you should know that it is not to your advantage to be without health coverage for a period longer than sixty three days. If you do so, your health insurance privileges under HIPAA (the 1996 Health Insurance Portability and Accountability Act) will be lost. This federal law says that individuals with unbroken health coverage must not be refused health insurance even though they have pre-existing health conditions.
If you have a previous condition or suddenly takes ill, a gap in your coverage that is longer than 63 days may make very difficult for you to find an insurer to give you coverage. This is why it is in your best interest to take COBRA health insurance until you get a new job that gives you health benefits.
If your company does not have COBRA, you can still be eligible. A lot of states have programs that are similar to take care of employees that are working in smaller companies. They have laws that make it possible for these employees to buy their own COBRA insurance.
COBRA is available because of the federal law which is under the jurisdiction of the Department of Labor. The Pension & Welfare Benefits Administration office of the United States Department of Labor can be contacted if you have questions or want to report a grievance. You can easily contact the office in your region.
We trust you found this information helpful but please feel free to give us a call at (816) 322 6350 or contact usif you have more questions about COBRA health insurance.
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