Affordable Care ActUntil the Affordable Care Act takes full effect, you might be eligible for continued healthcare benefits under a federal plan referred to as COBRA (Consolidated Omnibus Budget Reconciliation Act). Under certain circumstances, COBRA allows for a continuation of employer sponsored health insurance plan coverage that might otherwise be terminated upon the happening of certain events.

COBRA requires continuation of benefits if:

  • Employee is terminated or otherwise suffers reductions in work hours that would otherwise make him or her ineligible for a health plan
  • Also applies to employee's spouse or dependents, in event of death, divorce or legal separation
  • Further applies when child loses dependent status

Coverage is temporary, the employee may be required to pay the premiums plus a 2% administrative fee in order to keep the benefits. However, avoiding a lapse in coverage can be incredibly beneficial in order to secure private health insurance later on. For more information about COBRA coverage, contact your company's HR department.

For problems regarding denial or other issues with coverage, contact an COBRA Attorney today. You can also find more about COBRA here.