| There are many downsides to losing your job to say | | | | much longer. |
| the least. One that may not immediately come to mind | | | | COBRA is not a free ride. You must pay the |
| is the loss of your health insurance, but there is a form | | | | premiums to maintain the coverage. Although the |
| of fall back health insurance you can rely upon. | | | | coverage is from the health insurance plan of your |
| COBRA may sound like an odd name for a health | | | | former employer, the employer is no required to foot |
| insurance subject, but it is the abbreviation of the | | | | the bill. The law also applies only to businesses that |
| legislation giving rise to insurance coverage for those | | | | have more than 20 employees. |
| who lose their job. The law in question is the | | | | So, who is able to take advantage of COBRA |
| Consolidated Omnibus Budget Reconciliation At of | | | | coverage? Obviously, you can. So can your spouse |
| 1985. Now you see why COBRA is used! | | | | and your children. Interestingly, your spouse and children |
| COBRA is designed to provide a critical bridge | | | | can take advantage of it even if you do not. |
| between the health insurance plans provided by | | | | The laws relating to COBRA can be fairly complex. |
| employers. Put in simpler terms, it is a safety net for | | | | There are exceptions to the federal law that can |
| the person that loses their job and has medical needs. | | | | preclude you from health coverage. If you run into this |
| The importance of this bridge cannot be understated | | | | situation, there may still be a solution. Many states also |
| given the fact that many people have a spouse and | | | | have laws on the book similar to COBRA and they |
| children that need care. | | | | are often more favorable to employees. If you can't |
| The program creates a bridge for health insurance by | | | | get coverage under the federal COBRA law, make |
| legally extending the plan of your former employer. If | | | | sure to check with the Labor Board in your state to |
| you resign or lose your job for any reason other than | | | | ascertain your rights under state law. |
| gross conduct, you can take advantage of COBRA. | | | | At the end of the day, COBRA is a huge relief for |
| The law allows you to stay on the health plan of the | | | | people that lose their jobs for one reason or another. |
| former employer for up to 18 months. In many cases, | | | | This is particularly true if you have a family that has |
| your spouse and children can actually be covered for | | | | medical needs. |