As a number of people are being laid off from the organization, COBRA proves to be their ultimate resort. The Consolidated Omnibus Budget Reconciliation Act is there for the families and individuals who no longer have any health insurance benefits. If you had any job loss or any unexpected life events like death, you are free to continue your old group health insurance benefits for a particular period of time. COBRA has proved to be very beneficial to those who fall under this category.

COBRA can be sued by those employers who have 20 or more employees with their organization and also offers group health benefits and HMO'S to their employees. Usually, the employers are liable to extend your health insurance plan if you have suffered any loss at work or any kind of unfortunate event in life. There are many other qualifying events which can be listed to obtain health coverage through COBRA. Some of them are

Bad turn of events at workplace like job loss.

Voluntary Job Loss

Transfer to some other job

Reduction in job hours

Divorce

Any legal separation

Loss of dependant child status

If you qualify under any of above listed options then you can get coverage for your spouse, children for up to 18 months. Earlier, those people who qualified for COBRA were required to pay the full premium of health insurance but under new legislation you may also qualified for the reduced COBRA. As a number of people in United States of America are out of work, many people are looking for a health insurance that is affordable and falls under their budget. The premium of COBRA health insurance has been lowered by the government of the states, keeping in mind the economy crisis.

As stated by the United States department of Labor, participants are required to pay the 35 percent of premium in COBRA in order to get this cheaper health insurance plan. The reduction plan of the premium is effective only for 15 months. But keep in mind, if you are considered eligible for other health plans like Medicaid, then you are not liable to the reduction plan of premiums of COBRA. If you ever experience a qualifying event like reduced amount of hours in your job, your group health plan or HMO is under obligation to inform you about the particular qualification.

In case you have any qualifying life even, you should notify it to your health insurance plan. You have a total of 60 days to elect for COBRA health insurance plan. The 60 days initiates into action, from the day your notice is sent or the day when your coverage ends. Employers who have 20 or more employees working under them are usually covered under COBRA. But if you have worked under the previous organization and it does not have 20 employees working under it then you must check with the office of insurance commissioner. The state will look into the matter and it depends on them whether to provide you with the coverage or not.