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| COBRA Overview |
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What does COBRA do?
COBRA provides certain former employees, retirees, spouses,
former spouses, and dependent children the right to
temporary continuation of health coverage at group rates.
This coverage, however, is only available when coverage is
lost due to certain specific events.
Group health coverage for COBRA participants is usually more
expensive than health coverage for active employees, since
usually the employer pays a part of the premium for active
employees while COBRA participants generally pay the entire
premium themselves. It is ordinarily less expensive,
though, than individual health coverage.
NOTE: The ARRA provisions provide for a 65% reduction in
employee COBRA costs for a maximum coverage period of
nine(9) months.
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