Cobra Health Insurance (Is It Worth It?) - YouTube

In this video, I'm going to show you  how COBRA insurance works, what it does  

and why you should sign up for it. Understanding COBRA can be confusing,  

and it’s easy to make mistakes when  signing up for this coverage.  

COBRA can help you pay for your medical  insurance after leaving work, but there are  

several steps involved in applying for COBRA. You need to know who provides your current group  

health plan, how much time you have before  losing access to coverage, and what forms  

and paperwork you need, to apply for COBRA. This video will cover every step in this process,  

from finding out if you qualify for  COBRA benefits, through signing up for  

it with an online enrolment system. Hi there, my name is Craig from Trendy  

Money and in today's video, I want to talk  about the benefits of COBRA insurance.  

If you're one of those people who are  constantly changing jobs or you lost your job,  

chances are that you've got some  gaps in your healthcare coverage.  

COBRA helps bridge that gap from when  your employer-provided health care expires  

until the next open enrolment period starts. So let me explain what COBRA is and how it can  

help protect you during these uncertain times. COBRA is short for "Consolidated Omnibus  

Budget Reconciliation Act". It is a type of health coverage that can help  

those who have lost their jobs and keep coverage  at the same rates they had when employed.  

I will now discuss with you, how to sign up for  COBRA insurance so that you can get your life  

back on track after losing your job! A subscriber of ours, Michael, wrote to us  

about his experience with signing up for COBRA  shortly before he was let go from work.  

He also said his early application had saved  him from having no health coverage in the  

period after he left his job. Here’s Michael’s story:  

I had just lost my job and without it,  I would not be able to afford the cost  

of the healthcare insurance plan that  was provided by my former employer.  

I was so relieved that someone  took the time to tell me what I  

needed to know about COBRA coverage. I went straight home and clicked on the  

website of my insurance company, because  it's difficult to get them on the phone.  

When I found out about COBRA  coverage it laid my fears to rest,  

and I knew just what I needed to do. Michael now shares a few tips with you  

about how he had signed up for COBRA, and  how this helped after he lost his job.  

Please note, this video is not intended as legal  information and does not provide legal advice.  

If you need legal advice  contact a licensed attorney.  

The COBRA Act is a law that allows employees  to continue employer-sponsored healthcare  

after they leave their job. It's important to know how much time  

you have left on your COBRA coverage and  what steps to take before it expires.  

Coming up is the first tip Michael  shared with us on implementing his  

COBRA plan after he had lost his job. In the meantime, I will show you what steps  

you must take to validate your plan. First, you must verify that you had the  

correct type of plan. Did you know that COBRA  

is not a federal insurance program? Instead, it’s a federal law that allows  

you to keep any private insurance that you  might have had after a loss of coverage.  

COBRA coverage always applies to those  who are part of an employer group plan  

Most healthcare offered through an  employer will qualify for COBRA coverage,  

but individual insurance, including private  insurance purchased on the federal health  

exchanges, does not qualify. One exception exists for  

small health plans though... If your plan has at least twenty  

employees, it qualifies for COBRA coverage. If you have questions about your eligibility for  

COBRA insurance, call your insurance company  and ask for the Summary Plan Description.  

They should be able to  provide you with that.  

Did you know that qualifying for COBRA  coverage requires other factors, including  

the event in which you lost your job? In the next tip, I will show you how,  

and why this is very important. It is important to verify that you had an  

appropriate qualifying event. An event is what has caused you  

to lose your insurance coverage. A qualifying event may include the death  

of the employee, their termination,  or a reduction in their hours.  

Notably, it is not a qualifying  event if the employee lost their  

job due to gross incompetence. Employment termination is a qualifying  

event for COBRA regardless of how the  employee leaves; voluntarily or not.  

Misbehaviour is not defined as a pre-existing  condition by law and may be interpreted by  

the court if your employer challenges  your application for COBRA coverage.  

There must be proof that the act  of wilful wrongdoing was directly  

associated with your employment. However, employers typically don't  

charge employees with wrongdoing and  thus it probably won't be an issue.  

In a few moments, I will now share with  you, practical steps to apply for COBRA.  

Let's quickly look at one last thing you must  consider before you start your application.  

Another thing you must do is to establish  that you are a qualifying beneficiary.  

Did you know that a qualifying beneficiary is any  family member who was on the employer-provided  

healthcare before the qualifying event? If your parent goes on Medicare, they no longer  

qualify and would not be eligible for COBRA. A child, however, can apply for COBRA  

independent of their parent. Also, if you are the beneficiary  

of someone else’s insurance and they lose  coverage, COBRA can cover your expenses.  

This includes instances where that person  died or went on to Medicare coverage.  

If your relationship with the plan  holder changes, such as if you divorce  

them or you become an adult child no longer  eligible to be a dependent, COBRA Insurance  

will still provide continuous coverage. Coming up now are the easiest tips on how to  

apply for COBRA, which Michael told us about. They have been tested and proven to be true.  

Give notice of the qualifying event. COBRA is a great option for people who lose  

their health insurance benefits. But, it can  be hard to figure out how to give notice of a  

qualifying event and enrol in COBRA coverage. The Summary Plan Description will tell you  

everything you need to know about  giving notice of a qualifying  

event and enrolling in COBRA coverage. If you are unable to locate this document,  

contact your employer or insurance  company directly for information on how  

to provide notice of a qualifying event. Usually, COBRA eligibility is not an issue.  

After a qualifying event, employers are required  to contact affected employees and inform them that  

they have the opportunity to purchase continuation  coverage through their employer's group plan.  

Although employers usually make unemployed  individuals aware of any beneficial  

qualifying event, it is always up to them. For example, if they're not notified of  

a divorce or the loss of their dependent  status, they cannot reach out to you.  

Federal law dictates that you have up to  60 days to notify your insurance company  

of a qualifying event starting on the  date on which coverage terminated.  

Remember to Give Notice Of Qualifying Event  And Enrol In COBRA Coverage To Protect Your  

Health Insurance Benefits! There is one last condition you need  

to consider if you want to continue with  your application for COBRA coverage.  

With this next tip, I'll show you what  else you need to be updated about.  

Sit tight! You have to review your COBRA election notice.  

In no more than 14 days of contacting your  insurance company about a qualifying event, it  

must send you a COBRA election notice. This will give you all of the  

necessary information about your rights and  options under COBRA, including cost.  

If you choose to take advantage of  this opportunity, your health insurance  

should not change in any way now  that you are no longer employed.  

You are now responsible for the cost of  COBRA insurance and may even have to pay  

more than you originally did. You should consider other options  

if you find this to be too expensive. If you are okay with the cost of insurance,  

then you are good to go! The next tip will tell you how  

you can be a part of the COBRA plan. This is everything you have been  

waiting for... The next thing to  

do then is to sign up for COBRA! If you are okay with the arrangement,  

return your COBRA election notice to  your insurance company within 60 days.  

You cannot be charged when sending in a request  for coverage but will need to pay premiums.  

The first payment may come as early as 45 days  after starting coverage and is due immediately  

if covered by Medicare or Medicaid while  receiving unemployment benefits  

The paperwork will be a breeze. And each provider  is allowed to have their election notice!  

To avoid a time-consuming process, the federal  government has created an easy to use sample  

COBRA notice that only requires the printed name  and signature of parties signing up for it.  

The best thing to do is stay on top of your  premiums and keep them current. If not, you could  

lose the COBRA insurance coverage that protects  you from unexpected events with no warning!  

You can take advantage of a 30-day grace period  before your COBRA insurance is terminated.  

I will now provide you with one final  tip on how you can get good coverage  

after you have lost your job. Follow closely as everyone needs  

to know this! Start your search for  

alternative insurance within a year As soon as you start receiving COBRA benefits,  

the clock begins to tick. You only  have 18 months to find a new plan  

or else your coverage will end. Even if you can't afford it right away,  

I urge you to start looking for alternative  insurance within a year of losing your job.  

Some people think that they can just  wait until the last minute to sign up  

for an alternative insurance plan and then get  covered immediately when their COBRA ends.  

Unfortunately, that's not how it works! The best possible scenario would be signing up for  

a new policy within 30 days of losing your job,  but ideally, you should look into other options  

well before that period has elapsed. Sometimes a plan will let you stay on longer.  

However, other times they can  terminate coverage early for factors  

that are not in your control either. If you don't pay your premiums promptly,  

then it's possible to lose access to the plan. If this happens then you're not eligible for  

Medicare or a new health insurance  policy from an employer.  

To avoid this, follow these steps: You should find out when the coverage  

will end if prompt payment is not made. You may also ask friends about their plans  

if they have them, in case yours  ends up cancelled altogether.  

I am sure that this will help  keep you up to speed.  

Falling Action and Open Loop to another Video: This is everything you need to know  

about your application for COBRA. If you would like to know more about common  

health insurance hacks and tricks then click  on the link in the playlist on the screen.  

It will give you all the knowledge you need to  make sure you are not taken advantage of.  

Please, like, share and subscribe to help  others like you find this video and get  

help with their COBRA insurance. Thank you for watching.