What is the definition of COBRA?

COBRA, which is an abbreviation for Consolidated Omnibus Budget Reconciliation Act is a law that allows you to continue your company health plan even if you leave that company and become employed in another company. For whatever reason, if you decide to leave the company, you can still enjoy the health insurance coverage for the next 18 months.

This is to protect you even as you look for another job and become a beneficiary of another health policy.

There are certain qualifying events under COBRA that provide the patient with continued insurance coverage:

• the termination of the employee due to strike, resignation, medical leave or layoff
• the death of the employee covered by the policy
• the patient's divorce from the covered employee
• the covered employee's child has passed the age limit for coverage

After the insurance has been transferred to the employee, it is his responsibility to pay for the premiums.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage