Critical Information about Individual Health Insurance Plans

The term COBRA is the short form for Consolidated Omnibus Budget Reconciliation Act of 1985, a law for providing individual health insurance plans to employees. Your employer must offer you this individual health insurance plan under the COBRA law and only they can give this type of a plan.

Benefits of This Individual Health Insurance Plan

Here, you will find individual health insurance plans that cover your vision, dental, and prescription drug expenses. There are also some treatment programs for drugs and alcohol. You will find several benefits under the Employee Assistance Plans (EAP), which provides counseling or psychological treatment. Some employers may also offer on-site health care which includes free or discounted medical services.

If you want coverage for life insurance or for wellness programs or perhaps some long term care and disability help, then such a individual health insurance plan is not for you. This also does not offer a medical savings account like other plans do.

Vital Facts about This Individual Health Insurance Plan

If you choose this individual health insurance plan, then your first premium has to be paid within 45 days. This is likely to be high because it covers the entire period. Other premium payments are also required with a 30 day grace period for each premium payment. If you make a short payment for a small amount of money, then your employer has to give you 1 month to make up the shortfall. COBRA specifies a strict time frame within which your coverage is valid but you are also given the option of extending this period.

Premium Payments for your Individual Health Insurance Plan

If your premium amount increases for some reason, then it will probably be informed to you before the financial year begins. Such an increase will probably affect everyone at your workplace but this increase will be intimated to you and others beforehand. It is up to you to find out the premium payment dates if you opt for a monthly payment. If you miss this date then the liabilities are yours and you must know that no notices will be sent and no warnings will be given. It is your responsibility to pay these monthly or annual payments in full and by the due dates.

Disability Coverage for your Individual Health Insurance Plan

If you have been receiving Social Security Disability coverage for more than 2 years, or 29 months to be precise, then you get an additional benefit. You also get health benefits and coverage under COBRA. So get to know more information your individual health insurance plans or your group plans before you opt for it and start paying premiums.