Keep COBRA
If you leave your current job you can COBRA (Consolidated Omnibus Budget Reconciliation Act) their insurance for a year and a half. Under COBRA, you must pay the full costs of the insurance yourself, but at the rate your employer is currently paying for your coverage. COBRA applies to both employee and family if the family has had prior coverage.
For more information on COBRA go to the U.S. Department of Labor Web site:
www.dol.gov/dol/topic/health-plans/cobra.htm.
According to the Labor Department, “The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan.”
COBRA generally requires that group health plans sponsored by employers with twenty or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.
COBRA outlines how employees and family members may elect continuation coverage. It also requires employers and plans to provide notice.
For more information on COBRA go to the U.S. Department of Labor Web site:
www.dol.gov/dol/topic/health-plans/cobra.htm.
According to the Labor Department, “The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan.”
COBRA generally requires that group health plans sponsored by employers with twenty or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.
COBRA outlines how employees and family members may elect continuation coverage. It also requires employers and plans to provide notice.
Health Savings Account
Health savings accounts or HSAs that became available via the 2003 Medicare Drug Act are a way to help pay for these costs. They allow employees to save up to $2,650 on a pretax basis per year for future medical care. These are employee owned accounts that can be moved if you change employer. All funds that accumulate in these accounts are tax free.
Some employers provide employees nearing retirement with health reimbursement arrangements, which allow employers to credit amounts of money toward a retiree’s medical benefits. These accounts can’t be used prior to retirement. Ask your employer if such a plan is available for you.
Some employers provide employees nearing retirement with health reimbursement arrangements, which allow employers to credit amounts of money toward a retiree’s medical benefits. These accounts can’t be used prior to retirement. Ask your employer if such a plan is available for you.