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	COBRA Health Insurance

COBRA health insurance is a part of insurance law that has some amount of uncertainty but this law impacts the lives of many Americans at certain times of their lives. COBRA (Consolidated Omnibus Budget Reconciliation Act of 1986) altered the Employee Retirement Income Security Act, the Internal Revenue Code and the Public Health Service Act to continue with group health coverage that would otherwise have been ended.

As per the US Department of Labor; COBRA offers some former employees, retirees, spouses, former spouses, and dependent children the right of enjoying health coverage at group rates for short time. But this coverage is only given when coverage is lost because of some unforeseen events. Group health coverage for COBRA participants is generally costlier than that provided for active employees, as the employer pays some portion of the premium for active employees while COBRA participants usually have to bear the whole expense of the premium from their pocket. But it is comparatively cheaper than individual health coverage.

As a rule of thumb, if you are employed by a company with 20 or more employees and you exit your group health plan (or your group health plan ends due to some reason) for any reason other than sheer carelessness then you will get COBRA continuation coverage. Your spouses and dependent children are also covered under certain provisions.

The question is: should you select the COBRA continuation coverage option? If anybody in your family has serious health problems, then you should compare individual health insurance plans since individual rates are nearly ½ of the equivalent COBRA group health insurance premium. A major difference between individual health plans and group health plans is that you have to pay more to obtain maternity coverage while most group plans contain maternity coverage. If maternity is a necessity, then take time to check the rates given by COBRA with those given by from an individual plan with maternity coverage for an honest comparison.

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