Image via Wikipedia

Medical costs are expensive, but so is the health insurance that is supposed to help you curb your costs. While health insurance plans tend to be benefits that employers offer employees, the increasing cost to provide these benefits to employees is causing employers to do away with health insurance or reduce what they are offering employees. This means that if your health insurance situation changes, then you should be aware of your COBRA insurance rights.

What COBRA Is

COBRA is insurance coverage that is required by law when employees or former employees fall under certain conditions. For example, if your employer offered health insurance coverage to you and at least 20 other employees, but then gets rid of the plan, then you may be able to continue your health insurance coverage using COBRA. Your dependents may also have COBRA rights under your policy, depending on their coverage during the time you were covered by the employer’s policy.

Reasons COBRA is Available

Certain circumstances must occur in order for COBRA eligibility to become effective. These events include:

• Quitting your job
• Getting fired—as long as it is not for “gross misconduct”
• When the employer reduces work hours (such as from full-time to part-time)

Type of Coverage

COBRA insurance coverage must be the same as that offered under the employer-sponsored plan. So, if dental insurance or vision insurance was a part of the employer policy, then COBRA insurance must cover this tool.

It all sounds good, but there are a few catches. For one, employees or individuals are typically responsible for paying for the premiums n COBRA. The second drawback is that COBRA tends to be very expensive.