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How Does COBRA Insurance Work?

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From Quick Guide: Insurance Business Guide

Summary: COBRA insurance stands for Consolidated Omnibus Budget Reconciliation Act and allows employees to keep insurance for 18 months after losing their job. Learn about the expensive cost of COBRA premiums with tips from an insurance agent in this free video on insurance.

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By Vic Schumacher
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Vic Schumacher is part of HPE Financial Services, a brokerage insurance company representing all major carriers. He works with businesses, families and individuals, helping them to...read more

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Video Transcript

"Hello, my name is Vic Schumacher with HPE Financial Services. I'm an insurance broker representing a variety of different insurance companies. The question was asked, how does COBRA insurance work? Well, we'll give you first of all the idea of what COBRA is. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, which was done in nineteen-eighty-five. What it allows people to do is have insurance applied by their employer after they have been terminated by the employment. The thing here is, you lost your job, you can take your insurance with you through COBRA, but the premium for that insurance is going to be your responsibility now, it is not the responsibility of the employer. Or your ex employer. With COBRA the period of time it lasts is eighteen months and since you are now paying the entire premium it becomes very expensive. COBRA is something that's nice to have, but it's something that you don't really want to have. My name is Vic Schumacher, the company is HPE Financial Services."

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