jump to navigation

Clearing Up A COBRA Misconception February 8, 2010

Posted by solutionsinsuranceservices in COBRA, Health Insurance, Human Resources, Individual Insurance.
Tags: , , ,
trackback

We have had several people ask us to do an individual health insurance quote to compare to their COBRA rates. When these people were asked why they were going on COBRA (sometimes it is our recommendation to access the government assistance and elect COBRA), we were told that their employer was going out of business and their insurance plan was ending. We would like to take a moment to clarify COBRA. In order to receive COBRA, there has to be an employer’s plan to base the rates. If the employer either goes out of business and has no group insurance any more, or simply decides that insurance is too expensive and ends the group policy, there is NO offer of COBRA to the former or current employees. If the group plan ends, so does the offer of COBRA. Again, without a group to base the rates, there can’t be an offer of COBRA. In our clients situation, we had to move her and most of her fellow employees to individual plans.

Advertisements

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: