Top Five Things to Know About COBRA

Wednesday, August 31, 2016 Lifestyle News J E 4

NEW YORK, Aug. 30, 2016 /PRNewswire-iReach/ -- Clarity Benefit Solutions simplifies online benefit administration for brokers, employers, and consumers. The company's technology and services are designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.

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When someone is ineligible to receive the benefits of health insurance (most likely due to a qualifying event like layoff or voluntary departure), an employer stops paying the employee's premiums. However, due to The Consolidated Omnibus Budget Reconciliation Act (COBRA) if the ex-employee wants to keep his or her same coverage and is willing to pay for it, coverage can continue at a group rate to that employee and family. COBRA can be a slippery slope to navigate. Clarity Benefit Solutions reveals the five top things to know about COBRA.

Qualifying for COBRA. COBRA eligibility depends on the size of the employer. To qualify for COBRA, the employer must be a state or local government agency, or a company in the private sector with 20 or more employees. The employee must have been enrolled in the employer's group health insurance plan on the day before the qualifying event occurred that caused the employee to lose his or her insurance.

Cost of COBRA. When an ex-employee has COBRA, he or she must pay 100 percent of the cost because the employer is no longer paying for part of the ex-employee's plan.

Benefits of COBRA. For the ex-employee, COBRA allows him or her to have the same health plan as when employed—which means no changing of doctors and retaining coverage for any preexisting conditions.

Disadvantages of COBRA. COBRA can be very expensive, but the alternative is no health insurance. And, if the employer changes plans, the ex-employee has to accept the changes in the plan.

Lifespan of COBRA. Under COBRA, coverage has to be continued from the date of the qualifying event for a period of 18 or 36 months. The coverage period is 18 months if the qualifying event is the termination of employment or a reduction in hours; and 36 months for any other reason.

Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.

Media Contact: Calvin Clark, Clarity Benefit Solutions, 7324288272,

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SOURCE Clarity Benefit Solutions



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