So, you are now in the situation that you need to avail of the assistance of COBRA Insurance, but you do not know what to do to avail of it. This article will help you get started. You can get started by notifying your insurance providers that you will be availing of the COBRA benefits. But you have to understand that Insurance companies often only give a period of Sixty (60) days or Two (2) months for you to be able to validly avail of a Continued Coverage as provided by COBRA.
Before jumping into anything else, let us first review in brief what COBRA Insurance is. First thing, COBRA is not Insurance Company and this article is not an ad for it. COBRA is a law passed in 1986 in accordance with the United States Department of Labor. It is usually availed with the general Insurance policies that are provided by your employers. It works by giving you and/or your beneficiaries the chance to avail of your Insurance benefits despite changes to your employment status. Changes may include the following: Change or a Decrease in the number of Working Hours, Termination from your Job – both voluntary and Involuntary, Death and Incapacitation of the Insured and also in some circumstances the loss of Insurance provisions from a spouse as a result of Divorce.
As stated above, COBRA and the Insurance Companies associated with it generally have a Sixty (60) day period for notification. You have to act as soon as you can after the change in employment (in some cases marital status) occurs. Remember, that if you miss the Sixty (60) day grace period then you run the risk of being deemed invalid to avail of the benefit or you could end up tied up with paper works to prove it. Below are the necessary steps to take.
- Know your Insurance Provider – For most people knowing who their insurance provider is a given, but if you don’t then it is imperative that you do. You will be able to find this information in the contract that you signed with the company or in a breakdown of your monthly salary. This is a very important step so that you know which provider you need to approach. The Company you work for may also be the ones who will inform the insurance company of the changes in your status.
- The moment you have informed the insurance provider of the circumstances, they will make you choose if you want to avail of the Continued Coverage - which is provided under COBRA.
- If you do choose to avail of the Continued Coverage then they will assist you with the necessary paperwork and the process necessary.
- Even when you are still employed, you need to inform your Insurance provider of the following events so that you can continue to avail of the COBRA option and of the Company’s general services: These are :
§ Change in Marital Status by Marriage or Divorce
§ Disability
§ An offspring who comes of legal age and is no longer considered as a dependent to the Insurance plan. GP
