Agents, COBRA has not been Eliminated!

COBRA has not been eliminated under Health Reform. All the same rules and regulations continue for health plans including those for vision and dental. On May 8, 2013 the Department of Labor (DOL) issued a revised model notice which added additional language to the qualifying event notice. This was intended to inform individuals of additional options with guaranteed issue health insurance policies provided through the public marketplace. For those who qualify, they could be eligible for a subsidy.

Although Health Reform offers an alternative to COBRA though the marketplace, many other provisions of PPACA have a direct impact on COBRA. As an example, PPACA extended coverage for dependent covered children to age 26. When the coverage ends, employers subject to COBRA must extend the offer of COBRA to those children to allow coverage to age 29. Some of the other provisions that impact COBRA include the appeals process, lifetime limits and the stability period.

Even with the marketplace option, COBRA may be the better option. It’s important to review your health plan in detail before a decision is made. There is more to consider than a subsidy.