GROUP WEALTH IN COBRA HEALTH

2007-03-08 10:33:40

( Health )



With the Consolidated Omnibus Budget Reconciliation Act or cobra health, terminated employees and employees with minimal work hours can avail of health benefits for themselves and their families. The cobra medical plans only cover specific instances. Group coverage is more expensive than health coverage for active employees, yet is less expensive than individual health coverage.

Cobra cost is on the shoulders of employers with twenty or more employees from the year before. Plans sponsored by state and local governments, and the private sector are all eligible. However, cobra medical plans do not cover those from the Federal Government and certain church organizations.

Private sector employers generally sponsor welfare benefit plans that are under ERISA, and subject to ERISA’s approval. ERISA only requires that these plans have safeguards and rules showing how workers can claim their benefits.

Medical benefits under cobra health include hospital care, consultation with physician, operations, prescribed medicine, dental and eye care, and even more, except for life insurance.

Employers and family members have the right to elect continuous coverage and notify beneficiaries. These qualified beneficiaries may choose to elect to continue cobra health coverage. Employers and plan heads are obliged to specify the rights of beneficiaries in electing, notifying, and canvassing the types of cobra medical options.

Beneficiaries must pay entire cobra cost, and keep in mind that payments cannot exceed one hundred two percent of individuals in similar situation and have not yet had a qualifying event. Employees’ and employers’ pay are reflected in premiums, including an additional two percent for managerial costs. Disabled beneficiaries who receive eleven months coverage after the first eighteen months, premiums may increase to one hundred fifty percent of cobra medical plan’s coverage.

Cobra health beneficiaries must abide to the rules of the plan, and satisfy all costs, from deductibles to benefit limits.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.