Portable Insurance Act

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The portable insurance act is often referred to by its more traditional name: COBRA. Learn about the portable insurance act with help from an insurance broker in this free video clip.

Part of the Video Series: Personal & Health Insurance Tips
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Video Transcript

Hi, my name is Susan Combs, and I'm an insurance broker with Combs and Company. Today, we're going to talk about portable insurance. So what portable insurance is often referred to is Cobra. So with Cobra, the main thing is is basically when you leave your employer, you get to keep what you had. So a lot of times you always hear former employees complaining about the cost of Cobra. Here's the deal, Cobra is the exact same cost as your employer was paying plus a 2% admin fee. So if you look back to what your health insurance deduction might have been with your pay check, it might have been 25%, 50% and you thought that's what the full cost of insurance was, not the case. So Cobra is the 100% of the cost plus the 2% admin fee. Depending upon the state you are able to take Cobra typically 18 months to 36 months depending upon the state and you have 60 days to elect it from your last date of coverage. So something to keep in mind is don't wait too long if you think you're going to want to continue coverage because you do have that 60 day window and after that 60 day window you cannot go back and take the coverage. So I will encourage you to talk to the HR professional at the former company you worked at for more details.


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