COBRA - Consolidated Omnibus Budget Reconciliation Act

Information on COBRA Health Insurance Coverage and Obamacare

Update: February 8, 2015: COBRA (Consolidated Omnibus Budget Reconciliation Act) gives employees and their families who lose their health benefits the option to continue group health benefits provided by their group health plan for limited periods of time (usually up to 18 months) under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events.

Group health plans which cover 20 or more employees are required to provide COBRA benefits, however the individual who is entitle to coverage is responsible for paying the full health insurance premium - up to 102%of the cost to the plan.

COBRA and Obamacare

Before Obamacare, early retirees or employees with these circumstances would simply keep their health insurance coverage through COBRA for up to 18 months. While COBRA coverage will still be in effect after 2014, plan members may wish to shop around for a better deal through an exchange.

Under Obamacare, no one can be rejected or charged more for health insurance because of their health. In addition, premiums for seniors can be no more than three times as much as they are for young adults. If a person purchases coverage through an exchange instead of COBRA, the subsidy is based on your income during the year that the policy is in effect.

In other words, subsidies are based on your income in the year that you apply, including the dip in income after your employment ends.

 Some people may choose to keep COBRA regardless of the cost for the peace of mind knowing their doctors accept it, as opposed to risking the acceptance of the new policies.

The Henry J. Kaiser Family Foundation has a Subsidy Calculator that will display different insurance subdues and premiums with minimal household information. 

DISCLAIMER: The private websites, and the information linked to both on and from this site, are opinion and information. While I have made every effort to link accurate and complete information, I cannot guarantee it is correct. Please seek legal assistance, or assistance from State, Federal, or International governmental resources to make certain your legal interpretation and decisions are correct. This information is not legal advice and is for guidance only.

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