COBRA Continuation Coverage for the Unemployed

Being out of a job does not always mean having to do without health insurance as well. While waiting to be covered by Medicare you can avail of health insurance coverage under COBRA.

COBRA (Consolidated Omnibus Budget Reconciliation Act) is a way to provide continuation coverage to covered employees and their family after the employee…

• losses his/her job
• get reduced work hours
• dies

Instead of having no coverage, the employee has the option of getting coverage through COBRA. However, in most cases the employee ends up having to pay for the whole cost of the monthly premium. There is also a limited time for signing up for COBRA (usually max of 2 months from time insurance is lost) and the coverage only lasts for a limited time (18 to 36 months). The good thing is that while it is only for a limited time by the time coverage ends you will be covered through Medicaid.