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In the state of California, COBRA i.e. Consolidated Omnibus Budget Reconciliation Act allow workers and their spouses and/ or dependents to continue their group- health insurance coverage even if there is a catastrophe which have occurred and which would otherwise terminate coverage, like the worker getting laid off or his/ her spouse getting divorced. Generally, the benefits that one is supposed to reap from the insurance coverage lasts from one to three years, and it is often determined by the circumstance.
What are the COBRA Basics?
If you’ re an employee and you have been covered by your employer’s group- health insurance plan in California, you are usually allowed to continue with your coverage despite the existence of factors which would otherwise terminate your coverage.
Some of the factors which in most cases are referred as qualifying events that can easily end up terminating your coverage as an employee include; being fired, getting laid off or quitting (for other reasons apart from gross misconduct).
The spouse as well as dependents of the employee can continue their coverage also in case any of the afore- mentioned qualifying events occur. In case the employee dies, he/ she divorce with his or her spouse, he or she qualifies for Medicare, the spouse and dependents become eligible for their coverage.
However, be informed that an employee, his or her dependent or spouse who benefits via COBRA is always required to pay the cost of coverage in full. Be informed also that the cost of coverage is normally less as it would cost to buy an individual insurance policy because in most cases employers often negotiate lower group- health insurance rates.
How Long Does Consolidated Omnibus Budget Reconciliation Act Last?
The qualifying events greatly determine the period of COBRA benefits. Basically, in case the qualifying even happens to be the quitting of the employee, reduction of working hours of an employee or termination of an employee, benefits last for 1 year.
In case the qualifying event is the death of an employee, divorce or the employee or loss of dependent status by the defendant under the plan, COBRA benefits last for three years.
Be informed that COBRA coverage is liable to extension from 18 to 29 months in case the qualifying event is the reduction of hours, quitting or termination of employee. However, in such a scenario, the beneficiary should either have a disability at the time of the qualifying event or he/ she accidentally becomes disabled during the first 60 days of COBRA coverage.
Last, but definitely not least, for more information about how long COBRA benefits last in California, kindly do not hesitate contacting us.