Continuing Health Insurance Coverage Through COBRA
Part 4, Chapter 12: Specialized Situations: Extending Coverage through COBRA, the Portability Act, and Conversion Options Page 1
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There are a number of circumstances -- including job changes, divorce, and retirement -- in which an individual might wish to continue an existing health insurance policy after coverage under that policy would normally end. At present, there are three mechanisms through which that goal can be achieved: COBRA, the Portability and Accountability Act, and conversion options.
COBRA
COBRA is an acronym. The letters stand for Consolidated Omnibus Budget Reconciliation Act, a law that deals with a number of different issues, including the continuation of health insurance. Under certain conditions, COBRA regulations allow for the continuation of health insurance benefits for up to 18 months for eligible employees and for up to 36 months for their eligible dependents.
COBRA regulations that relate to private health insurance plans are administered on a national level by the Pension and Welfare Benefits Administration of the United States Department of Labor. COBRA regulations that relate to health insurance plans sponsored by state or municipal government agencies are administered by the United States Public Health Service (See Appendix B). While these national offices set basic rules and deal with specific complaints, they do not provide health insurance. Instead COBRA allows for an extension of existing health insurance policies.
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