Definition of cobra insurance

The name sounds like awkward because the name is associates with the deadliest poisonous snake COBRA. But the acronym of the word cobra is “Consolidated Omnibus Budget Reconciliation Act. This cobra insurance has been implemented to explain the health benefit provisions of cobra act 1986.

Cobra Act 1986 – Overview

Cobra act 1986 helps to take care of important and immediate medical needs of workers in such a way it helps to support their families in the form of financial aid. In the past, group health coverage is only applicable to the workers who work full-time, but after 1986 law this has been changed with COBRA. Now even the part-timers can avail and buy group health coverage for their own and for their families for a short duration of time.

Coverage details of cobra insurance

Cobra insurance is designed to provide medical benefits for the employees and their families through insurance. The coverage benefits for cobra insurance are.

  • Complete care will be given to inpatient and has the coverage of outpatient hospital care.
  • Doctor care
  • If your doctor suggests a surgery, cobra insurance has the coverage of it.
  • Major medical benefits, money can be claimed of all the medicines you buy.
  • Dental and vision care comes under cobra insurance.

If you are an employee of a company and you are eligible for getting this cobra insurance , the health plan which you have taken should send you a notice stating your right to choose the benefits provided by the plan. Grace period is 60 days if you don’t avail the coverage then eventually you will lose it.