COBRA Insurance 2012

Understanding COBRA Insurance in 2012

If you are on or considering enrolling in COBRA insurance in 2012, it is extremely important to make sure you fully understand the law as well as if any major changes were made to the law for COBRA insurance 2012. Fortunately, there were no changes made to the 2012 COBRA insurance laws and that signifies that COBRA insurance enrollment, eligibility, and term length will not change. However, across the health insurance industry, we continue to see the rates for group health insurance rise. For many families this means that COBRA insurance in 2012 may not actually be the most affordable and best option.

COBRA Insurance 2012 Basics

The basics of COBRA insurance in 2012 have not changed. COBRA insurance, short for the Consolidated Omnibus Budget Reconciliation Act, is a piece of legislation that was passed in 1986. Under this legislation, qualifying employees have the option to continue their group health insurance coverage when they lose or quit their job. Under COBRA insurance in 2012, employees will keep the same plan they had with their employer if they enroll in COBRA, at the full cost.

Eligibility Requirements COBRA Insurance 2012

Under the COBRA insurance legislation, employees, spouses, children, retirees, former spouses, and other dependents are eligible for COBRA and can keep their COBRA insurance in 2012 if they meet the following requirements:

• Type of Insurance Plan Coverage:
  To be eligible for COBRA insurance in 2012, the medical insurance plan at your former place of work must cover at a minimum of 20 employees.
• Qualified Beneficiaries:
  This requirement refers to who is eligible to continue their medical insurance coverage under the COBRA insurance 2012 laws. Typically anyone covered under the previous health insurance policy will continue to be eligible for COBRA insurance in 2012. This normally can include spouses, children, and any other dependents.
• Type of Qualifying Events:
  Under the COBRA Insurance 2012 laws, in order to continue your medical insurance under COBRA, you must have either left your job voluntarily (i.e. quitting) or been terminated from your place of employment without gross misconduct.

Why is COBRA Insurance More Expensive in 2012?

Although the COBRA insurance law hasn't changed in 2012, many people will find that their COBRA insurance cost and rate is very expensive. COBRA insurance is expensive for two key reasons. First most employers pay up to 90% of health care costs for their employees. With COBRA, you have to pay it all yourself. This means your health insurance cost is going to increase since your employer will no longer pay for some of your health insurance costs.

Secondly, group health insurance rates are on the rise and continue to become more and more expensive. Why? There are a few reasons that group health insurance rates are expensive and on the rise. Group health insurance plans cover virtually everyone at your place of employment - healthy or otherwise. In order to do this, health insurance plans charge high rates to cover the people who are the least healthy. If you are relatively healthy, your rates are higher because you are paying for people who are not. Additionally, as our population continues to age, group health insurance plans get more expensive our aging population.

How to Find More Affordable Health Insurance Compared to COBRA Insurance?

For most individuals and families, there are much less expensive to COBRA insurance in 2012 that will provide the same coverage. Most families can actually save up to 60% on their health insurance costs. The easiest way to do that is to get a free online quote for health insurance and compare that quote to your COBRA insurance monthly rate. This rate is provided on your COBRA insurance 2012 enrollment form. You can start below and get your free quote. It takes about 10 minutes and there is absolutely no obligation to sign up for anything. Just use that number to compare insurance plans to save the most money with the best plan.