Posted: Mon Oct 13, 2008 4:59 am Post subject: Cobra benefits for jobless..
Hi, I'd like to know from you whether it is possible for the employees of a company to opt for Cobra benefits under circumstances that the company runs out of business (in the absence of health insurance) ?
Regards, Plasticmind _________________ Register Now to have your Insurance queries solved.
I've heard of employees who had lost their jobs and even after that had the opportunity to continue with their group health plans through their employer under the Cobra Act.
On the other hand, employees whose companies had lost the group health plans were no more eligible for Cobra. At the same time you may come across certain union employees who would be entitled to such benefits through a joint negotiation that supports such medical plans.
Purpleheaded08 _________________ Register Now to have your Insurance queries solved.
Why do you need to think of a health coverage that is supported by Cobra?
Even when you're not being eligible for a health coverage supported by cobra, you may always have the option to go for any other group health coverage. If you have lost your job, you could avail another group health coverage through your new employer.
On the other hand you may ask a family member to add your name to his employer-supported family health care plan. So, as you can see you still have a couple of options left to choose from.
Crossbreed _________________ Register Now to have your Insurance queries solved.
Hi,
Some times a pre-existing condition which comes through a previous employer's group health coverage may be eliminated under the HIPAA 1996. Such extinct policies would have a vital role to play while the policyholder goes on to apply for a similar policy under his new employer.
Caromel_merquez _________________ Register Now to have your Insurance queries solved.
Hi,
I would rather suggest a couple of other good options for you-
The state govt. unemployment office would fund for public programs that offer health insurance coverage at cheaper costs.
Insurance carriers have come up with health care programs that are designed for specific individuals, but to avail this service one needs to pay more in terms of premiums.
Some employment places will let you continue coverage after you are unemployed but it is sometimes pretty costly. I would take roddick's advice and contact the unemployment office to see if there are any cheaper places out there for insurance. Good Luck.
Wow...all of the misinformation flying around out here...
My assumption is that the company (the employer) is going out of business based on the OPs post:
Quote:
Hi, I'd like to know from you whether it is possible for the employees of a company to opt for Cobra benefits under circumstances that the company runs out of business (in the absence of health insurance) ?
If the company goes out of business, it is probable that the group plan under which the employees were covered is going to go away as well. Remember that COBRA deals with the continuation of group medical benefits upon separation from work for other than cause. This means that the COBRA beneficiary (that's what you're called) stays in the group plan.
The next logical step says that in order for COBRA continuation to occur, the group plan must actually be in existence. If the employer goes out of business, the group plan will go "out of business" as well. So- if there's no group plan, there's no COBRA.
Secondly, regarding this comment posted by Caromel_merquez:
Quote:
Some times a pre-existing condition which comes through a previous employer's group health coverage may be eliminated under the HIPAA 1996. Such extinct policies would have a vital role to play while the policyholder goes on to apply for a similar policy under his new employer.
HIPAA does not eliminate exclusions for pre-existing conditions, it limits how LONG a plan may exclude for a pre-x situation. Additionally, just about every state has rules within group plans that will not allow an insurer to attach a pre-x exclusion in any circumstance. I am not familiar with pre-x being part of any group plan assuming the employee enrolls in the group plan during "open enrollment" periods. If you elect to enroll in the group plan as a "late enrollee, you may be subject to medical underwriting and a pre-existing condition exclusion. HIPAA states the the maximum pre-x exclusionary period is 12 months for "on-time" enrollees and 18 months for "late" enrollees.
There is much more to this than what's contained in my post. If you're curious, I can probably go deeper if asked.
