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• Solutions for Diabetics when losing their jobs and considering COBRA health insurance 

In today’s economic climate, health insurance through COBRA serves as an invaluable bridge from the benefits of a previous plan to future enrollment in a new health insurance plan. COBRA is designed to continue uninterrupted benefits for disenfranchised employees.

It is believed that more than 23.6 million Americans suffer from diabetes. Only about 17.9 million diabetics have been properly diagnosed. While many of the symptoms may seem innocent enough, diabetes is often not discovered until the disease’s later stages. Once diagnosed, diabetics require continual care, medications and observation. Diabetics realize that their disease can be safely and effectively monitored, but are aware that regular insulin treatment is necessary.

Diabetes is a classic example of the prudence and value of COBRA. When employment situations change, the employee does not necessarily lose their medical benefits. Under a variety of circumstances0, an individual and the individual’s dependents can keep their existing health insurance coverage for between 18 and 36 months. Individuals who file for their COBRA continuation coverage within 60 days of their employment change must pay for their COBRA continuation coverage, but those persons and their covered dependents have the security of uninterrupted health insurance.

One of the COBRA continuation benefits is that pre-existing conditions remain eligible for treatment. With diseases like diabetes where ongoing care is essential, COBRA creates the bridge from one policy to a future health insurance policy and the diabetic can continue their treatment without interruption.

In the U.S. today, employment opportunities are often evaluated by the strength of the employer’s health insurance. Not only is health insurance a valuable benefit, but it speaks volumes about how employers treat their employees. At the same time, situations arise when employees and employers must part. Employers are obligated to notify employees of the availability and conditions of COBRA continuation coverage. Often new employment opportunities have waiting periods before new health insurance coverage is enacted. Meanwhile, the diabetic needs continual care. COBRA was passed to deal with this exact scenario.

Persons enrolled in another health insurance plan are generally not covered under COBRA. However, there are six criteria that enable a disenfranchised employee to utilize COBRA continuation coverage.

1. Voluntary or involuntary termination of employment, with the exception of termination due to gross misconduct, or significant reduction in hours. 
2. Death of an employee, thus termination of health insurance coverage for dependents. 
3. Divorce or legal separation. 
4. Employee’s entitlement to Medicare benefits.
5. A dependent child who is no longer deemed to be dependent under a health insurance plan.
6. For retirees with health benefits, COBRA continuation coverage is available when the employer files for bankruptcy.

The pre-existing condition coverage is a compelling reason to use COBRA to bridge spans between health insurance coverage. While there is a cost consideration, the COBRA continuation coverage provides great peace of mind for the diabetic and for any other person suffering an existing physical ailment or condition.

George L. Fox, LUTCF, serves as Vice President of Planning Financial Futures, Inc. He is a lifetime resident of Long Island and lives in Huntington with his wife, Vicki, and their three children. George is a graduate of the State University of New York, NYIT and the College for Financial Planning.

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Source: http://www.cobrahelpcenter.com

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