Stress Free COBRA

If you have recently lost health insurance coverage through your employer from voluntarily or invulnerably termination of employment (excluding reasons of gross misconduct), you and your dependents may be eligible to continue your coverage under COBRA (Consolidated Omnibus Budget Reconciliation Act). Understanding the basics of how COBRA works and what your options are, can help you make better choices with less stress.

Contrary to popular belief, COBRA is not a separate insurance company or policy provided by the government. It is a ruling by our government allowing you or your dependents to purchase the same health insurance policy you have been receiving back from your company.

If your employer has more than 20 full-time employees, they are required to notify you and your dependents within 14 days from the date of your termination of your rights under COBRA.

You then have 60 days to notify your employer if you wish to continue your coverage. After you notify your employer, you then have another 45 day grace period to pay your premiums.

Many people make the mistake of either signing up right away out of fear of not having insurance or looking at the cost and immediately waiving coverage. The cost can be intimidating, as the rates are expensive, up to 102% of the actual cost that the employer paid for your coverage.

Before you make any hasty decisions, take into consideration the following two questions. Do you think you will be covered under another policy within 60 days? Or, are you or a covered dependent currently being treated for a medical condition?

If you think you will have coverage within 60 days, save yourself some money and do not immediately sign up for COBRA. However, do not waive your option. Remember you have 60 days to decide; you do not have to decide immediately. If during this time, all you have is a forty dollar claim, the forty dollars may be a whole lot cheaper than the price of the full premium. During these 60 days, if you were hospitalized for major surgery, you would still be able to immediately elect back your coverage to the day you lost it. If you were too hasty and waived your option, you might still be able revoke your waiver, but your insurance might only be reinstated from the date you revoked it, and not to the date you lost coverage. You have nothing to lose by waiting the 60 days to decide.

If you are unsure if you will have coverage in 60 days, yet you have no ongoing medical or pre-existing conditions, you can still hold out on electing COBRA, in the chance that a new policy soon becomes available. (There are many individual policies on the market that may prove to be a more affordable alternative if you are in good health). If after 60 days you still have not found coverage, go ahead and elect COBRA, keeping in mind that you have yet another 45 day grace period to pay your premiums. If you become covered under another plan within the next 45 days, just notify the COBRA administrator that you have found other coverage, and cancel your election. You will have saved yourself a ton of money. If a medical emergency comes up in that 45 day grace period, just pay your premium in full, and you coverage will be reinstated to the date that you lost it.

Additionally, if you or a covered dependent are currently being treated for a medical condition, you might be subject to a pre-existing condition clause under a new policy. However, under the HIPAA (Health Insurance Portability and Accountability Act), if you do not have a lapse in coverage for more than 63 days and your new plan covers your condition, the new policy will have to give you credit for each month you were previously covered under your old policy towards their exclusion period. This could reduce or eliminate the exclusion period entirely.

For example, say you are diabetic and have been covered under your previous policy for 12 months. You terminate your employment and decide not to immediately elect COBRA. You then become eligible to participate in a new plan that covers diabetes; however the new plan has a pre-existing condition clause that states that you must wait 12 months before you can make a claim for this condition. All you have to do is present the new plan administrator with the HIPAA certificate, which you will have received from your former employer showing that you have been covered for this condition for 12 months. If you have not had a break in coverage of more than 63 days, the new insurance company will have to waive the entire 12 month pre-existing period and your claims for this condition will be covered.

If only one member of your family has a medical condition and you must opt for COBRA for that member, keep in mind that you do not have to elect COBRA for the entire family. Sometimes it is cheaper to elect COBRA for one member and find an individual policy for the remaining members.

Being without employment or starting a new job is a stressful period. Understanding your options can help take the load off.

For more information on COBRA and HIPAA, check out the U.S. Department of Labor's web site at http://www.dol.gov/dol/topic/health-plans/index.htm.

Deborah Abdulla came from a career as a Human Resources Manager of a busy oil and gas corporation in Houston, Texas. With a deep understanding of the daily stresses of her employees, she started her own business called Indigo-Daisy-Shack which offers subtle ways to calm, relax and de-stress. You can see her web site at http://www.indigo-daisy-shack.com

maide service in Park Ridge ..

In The News:

Scammers create fake Evite invitations that mimic legitimate event emails, requiring users to verify senders and use antivirus software for protection.

The new Apple Watch hypertension feature passively monitors blood pressure patterns over 30 days using sensors to detect chronic high blood pressure signs.

Chrome extension spyware disguised as a free VPN service highlights security risks after it captured private browsing data from trusted sites.

New research shows how fatty acids in cooking oil can safely dissolve and recover silver from circuit boards without harmful chemicals or environmental damage.

The Fox News AI newsletter gives you information on the latest AI technology advancements, and about the challenges and opportunities AI presents now and for the future.

Anthropic investigates alarming AI abuse case where hacker automated entire cybercrime campaign using Claude, stealing sensitive data from defense and healthcare firms.

TikTok, Meta and YouTube restrict Charlie Kirk shooting videos with age gates and warnings while X faces criticism for allowing continued circulation.

Cybercriminals use fake troubleshooting websites to trick Mac users into running terminal commands that install Shamos malware through ClickFix tactics.

San Francisco startup Fable launches Showrunner, an AI platform dubbed the 'Netflix of AI' that generates animated episodes from text descriptions with Amazon support.

Apple raised iPhone prices for some models despite receiving tariff relief from President Donald Trump, with the new lineup starting at $799 for the base model.

A two-story 3D concrete printed home in Western Australia demonstrates faster construction methods that could reshape American housing amid rising costs.

Credit scores remain important during retirement for insurance rates and housing applications, while seniors become prime targets for identity theft and financial scams.

Scammers now send unexpected packages with QR codes that redirect victims to fraudulent websites or download malicious software to steal sensitive information.

Meeting AI tools record private conversations alongside work discussions, creating privacy risks that can be managed with proper settings and awareness.

Hotel privacy concerns are valid but rare, with methods to detect hidden tech using smartphone flashlights, mirror tests and scanning apps.

Improve your Wi-Fi speed and reliability with 10 simple router optimization tips that don't require special apps or expensive subscriptions.

A Columbia University breach exposed names, Social Security numbers and academic records of nearly 869,000 people, with notifications beginning in August.

Rental car drivers use AI-powered apps like Proofr to protect themselves from unfair damage fees as major companies deploy automated inspection tools.

Fox News' AI newsletter brings you the latest on technology advancements around artificial intelligence.

OnTrac data breach between April 13-15, 2025, exposed personal information of over 40,000 people including Social Security numbers and medical records.

A woman named Wika announces her engagement to an AI chatbot sparking worldwide debate about virtual relationships and technology.

The notorious people search site National Public Data relaunches despite a previous breach affecting 3 billion individuals, raising fresh privacy concerns.

Revolutionary TRAUMAGEL gel controls life-threatening bleeding from gunshot wounds and traumatic injuries, helping first responders prevent prehospital deaths.

Protect your home network by enabling proper encryption, creating strong passwords, checking connected devices and using VPN and antivirus software.

The Navy's solar-powered Skydweller drone flew nonstop for 73 hours in Mississippi, proving renewable energy can power long-endurance military missions.

Stress Free COBRA

Stress Management