One of the problems with changing jobs is the fact that switching to a new job may result in a loss of health insurance coverage. Considering the fact that many people have ongoing medical conditions that require treatment, losing one's insurance can be a calamitous situation. As a result, many people will stay in a job unhappily in order to maintain their coverage. For federal workers, there is a huge benefit that is bestowed upon them when they exit federal service as they can maintain health insurance coverage under what is known as the federal COBRA health insurance coverage program.
Understanding What Cobra Benefits Entail
Basically, if an individual leaves the federal service and is does not have insurance in the new position they are entering they will be able to keep their coverage for 18 months provided they paid the full premium. The insurance provider would not be able to turn them down for any reason and must accept providing them full coverage for the duration of the 18 months.
At the end of the 18 months, the insurance provider may exercise the option to drop them or to keep them under coverage. Since the 18 month period will be a single payer paying for group coverage under the employer's terms, any further insurance coverage will have to be an individual plan. While insurance companies are not exactly thrilled about keeping people under coverage without the option of being able to drop them, the companies are mandated to do so under federal law.
Now, COBRA is not a cheap deal as paying for a group plan will be more expensive than paying for an individual plan, but it is good for the short term if you expect to get health insurance coverage from a new employer in the near future. Also, it is good for those with pre-existing conditions insurance companies would prefer to avoid.
The Fight for COBRA Health Insurance Coverage
The COBRA program was not a program that passed the legislative body in the House of Representatives easily as there were many lobbying groups that sought to dissuade approval of the passage of the legislation. As we know now, COBRA did pass into law and is now a valid program that has helped a number of people maintain their benefits during critical transitory periods. While COBRA is not the best legal protection system for people who need medical coverage it serves its primary purpose quite well and has helped a number of people and continues to do so.
