COBRA Health Insurance Laws
COBRA health insurance laws allow employees to continue their health care coverage under their current medical plan after the employee has lost their job or been excluded from coverage. Learn about the Title X component of COBRA laws with information from a financial adviser and insurance broker in this free video on health insurance.
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This is John Pinelli, Financial Representative, talking to you today about COBRA Health Insurance laws. COBRA, also known as the Consolidated Omnibus Budget Reconciliation Act was enacted in 1985. Now the purpose of COBRA was to provide employees who had either been excluded from or lost their coverage, lost their job, etc.; they allow these employees to continue some coverage under their current medical plan and medical provider. A major component of COBRA is called Title X. What a Title X does is, it says that the, the employer cannot deduct the expenses that they're paying for health insurance coverage on behalf of the employed if for some reason they do not maintain the coverage when the insured either has, has some sort of qualifying event. Now what that would be could be death of the insured; so maintaining that insurance for that person's family members who would have been covered under their plan; it could be divorce. So maintaining that coverage for the person and their spouse should they become divorced. Also, if a dependent of the insured whose also on their plan becomes over the age of which they're covered on the plan; maintaining that coverage there as well and then also maintaining coverage for loss of job or changed of position. So if the employer does not maintain this coverage for the insured during the course of any of these events, then, they're not allowed to deduct it from their taxes. So that can be really important in an insurer's that the employer is doing what's right and provide, continuing to provide this coverage in the event of these qualifying events. So this has been John Pinelli, Financial Representative talking to you today about COBRA Health Insurance laws.