COBRA Health Insurance - A Safety Net If You're Laid Off

COBRA stands for Consolidated Omnibus Reconciliation Act, a Federal passed in 1986 that helps you keep your group health insurance coverage going, even if you are laid off. COBRA may be an option for you if your work hours are reduced, or your position is eliminated. If you're going through treatment for breast cancer, losing your health insurance could cause severe financial distress and in some cases, bankruptcy. You do not have to stop or delay your cancer treatments because of the high cost. COBRA is not free, but it will give you a safety net for health care expenses.

If you (or your spouse) were working for an employer that had 20 or more employees, and had group health insurance coverage through your employer and then were laid off, downsized, or had your hours cut down, you may be eligible for COBRA. Even if you have just become entitled to Medicare - you can still apply for COBRA. For dependant spouses who have become legally separated, divorced, or widowed, COBRA may be a good option for you.
If you were fired for gross misconduct, you do not qualify for COBRA. You cannot be fired for having breast cancer however - because ADA and FMLA laws protect you.

Your employer is legally required to notify you of your COBRA option to continue health insurance coverage at your own expense. You have only 60 days after notification to make a decision about COBRA. If you miss this deadline, your option expires and cannot be reclaimed. If you decide to choose COBRA continuation coverage you must to pay the initial premium within 45 days of your decision.

The much-debated Patient Protection and Affordable Care Act was signed into law in March 2010. Although the health care reform bill affects availability of health insurance coverage to Americans, it does not affect COBRA. The full effects of health care reform legislation will not be felt until 2014, when you can buy health insurance exchanges in your state.

When you're working and your employer offers group health insurance benefits, you pay just the cost of the premiums every month. On COBRA, you will make a payment that covers the share that your employer used to pay, as well as your employee premiums. Some companies may add a fee for administration – be sure you ask the Human Resources office at your place of work about your total cost.

If the monthly cost of COBRA is more than you can afford, talk with the financial officer at your oncology clinic about other options. Don't skip treatment for breast cancer because of money troubles – even in tight economic times, there are resources to help you cover the cost.

_{Sources:
Continuation of Health Coverage - COBRA. U.S. Department of Labor. Accessed on June 28, 2010.}