How to Calculate COBRA Insurance

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How to Understand COBRA Insurance....5

Calculating COBRA insurance requires you to use a very particular equation for maximum accuracy. Learn how to calculate COBRA insurance with help from the President of The Stratford Financial Group, Inc. in this free video clip.

Part of the Video Series: COBRA Insurance
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Video Transcript

Hello, I'm Jeffrey Ingalls, president of Stratford Financial Group and Stratford Employer Services in Wayne, New Jersey and right now we're going to talk about how to calculate Cobra Insurance. Cobra as you know is the federal labor law that provides qualified beneficiaries the right to continue group insurance coverage at group insurance rates that may otherwise have been lost or terminated. So how do you calculate Cobra Insurance? It's a two part calculation. The first part relates to how long the Cobra Insurance can last. The maximum of Cobra continuation will depend upon the qualifying event that you have experienced. Most qualifying events will result in an 18 month or 36 month time frame. The second calculation refers to how much Cobra Insurance will cost. Cobra Insurance will cost the same amount the employer is charged by the insurance carrier. However, the employer has the right to charge a 2% administrative surcharge to cover the administrative costs involved with administering Cobra. In other less common instances, premiums can be decreased because of an employer's subsidy or increased during the participant's 11 month disability extension. I'm Jeffrey Ingalls, president of Stratford Financial Group and Stratford Employer Services in Wayne, New Jersey. We can be found at www.stratfordlink.com and you just watched how to calculate Cobra Insurance. Thank you.

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