Introduction
The state strictly ensures that organizations respect the interests and safety of employees. Accidents can occur at the most inconvenient moments at the workplace. Insurance protects one’s employees and their families, making it essential as an employee benefit so that employees will be more prepared if accidents should occur. This paper aims to explore the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985.
Main Body
COBRA enables employees and their families to continue receiving group health benefits from their group health plan for a limited time after losing their health coverage. Employers outside of the federal government are obligated to provide eligible employees with COBRA coverage if they have more than 20 employees (“Learn about COBRA,” 2023). Only specific conditions permit the implementation of COBRA health insurance. These circumstances are often known as “qualifying events.” These include:
- “Termination or a reduction of a covered employee’s hours
- Divorce or legal separation from a covered employee
- Death of a covered employee
- Medicare eligibility for a covered employee
- Loss of a child’s or dependent’s health insurance coverage under the plan” (“Learn about COBRA,” 2023, para. 2).
For instance, an employee must be employed and enrolled in a group health plan through their company. When someone is fired, retires, leaves their employment, or has their hours of work reduced to a specific level, their employer should no longer be required to offer group health insurance for them. In order to get insurance, a dependent should be married or have a blood connection to the employee (“Learn about COBRA,” 2023). A deceased employee’s spouse may also be eligible for COBRA benefits.
It is common to underestimate the true cost of COBRA insurance. An employee’s health insurance premium is often paid in part by their employer while they are employed and in part by their own contribution. When COBRA insurance kicks in, the person is responsible for covering the entire insurance payment, including the portion their employer had previously paid for and their past contribution (Kiplinger, 2009). As a result, the true cost of COBRA insurance is the sum of the prior payments made by the employer and the employee, exclusive of any employer subsidies.
The duration of COBRA coverage typically equals 18 or 36 months. The type of qualifying incident that qualifies one for COBRA will dictate the response. COBRA may be terminated early if the employer does not pay the premiums or other associated fees for the insurance. (Kiplinger, 2009). If one lands a job that provides health insurance before it expires, it can also be canceled. When an employer’s health plan expires, COBRA insurance continues coverage. The employer, the insurance provider, or both will provide information about COBRA coverage. The insurance company is required to include information about COBRA rights in the plan papers when an employee first enrolls in a plan.
Conclusion
In conclusion, employee insurance is essential because it allows employers to ensure safety at the workplace and show respect to their subordinates. Employee insurance is a type of business protection that allows entrepreneurs and employers to protect their businesses and employees from financial losses in an accident, illness, or injury. This insurance covers accidents listed in the qualifying events list. The length of the insurance may be fixed under specific circumstances.
References
Kiplinger. (2009). Understanding COBRA health insurance [Video]. YouTube. Web.
Learn about COBRA insurance and how to get coverage. (2023). USA.gov. Web.