Health Insurance: a Plans of your life

When you lose your job, it seems like a bunch of stress can build up from there. Not only do you have to apply and interview for more employment, but you no longer have a source of income that can help you pay for the various needs of your family. This can be especially dangerous if you need medical aid. Thankfully, some people who lose their jobs are still eligible for health insurance under the Consolidated Omnibus Budget Reconciliation Act of 1985, or COBRA.

COBRA was passed under Ronald Reagan, and it deals with a wide variety of topics. Besides continuing health insurance, COBRA also includes amendments to the Employee Retirement Income Security Act of 1974 as well as regulation for tobacco price supports, railroads, disability insurance, and even the postal service. One of the most important parts of this bill is Title X.

Title X of COBRA helps protect those who lose their jobs for specific reasons, such as those who are terminated involuntarily, resign, discharge, layoff, strike, or medical leave. Additionally, it can cover family members of employees who die, as well as those who become separated or divorced from a covered employee or a child of said employee. One thing to note, however, is that COBRA will not cover you if you are fired for gross misconduct.

In order to force employers to cover the ex-employees who qualify for COBRA, the act states that employers who do not offer coverage under COBRA are not eligible to claim health insurance benefits as a tax deduction. For the health insurance benefits to be counted as a tax deduction, the employer must offer aid under COBRA for the following amounts of time:

• Up to 18 months for employees and their spouses and dependents when the employee loses benefits due to involuntary decrease in hours or termination
• Up to 29 months for those who become disabled during the first 60 days of COBRA coverage, as well as their non-disabled dependents
• Up to 36 months for spouses and dependents who may lose coverage due to death of the worker, separation or divorce, and other various reasons

Sometimes, despite the helpfulness of COBRA, it can be tricky to rely on health insurance through your place of employment. Because health insurance is such an important aspect in helping you stay healthy, you should always make sure that you have this coverage.By Joseph Devine