Health Insurance; COBRA; OBRA; HIPAA; Medicare; Definitions, Relationships

Health Insurance; COBRA; OBRA; HIPAA;you or a member of your family has what is
Medicare. If asked, could you state that youcalled a "pre-exisitng coverage" condition.Here
knew that all 5 of these topics had the sameagain, before automatically taking COBRA, it would
thing in common: medical insurance coverage forbe wise to contact a Benefits Insurance Broker
you and, perhaps, your family? Would you knowand give him/her all of your options, and get their
the qualifications for each? Well, in this article, weinput. I have worked extensively with a Benefits
will discuss them. For a timeline that depicts,Insurance Broker, and he is absolutely
graphically, the time relationship between them,fantastic!OBRAWhat, you ask, is OBRA? I've
please see the timeline in INSURANCE Coveragenever heard of it, you say, and no one I know
from WorkIf we are lucky, we, and/or ourhas heard of it either! Well, that's because, 99%
spouse, work for a company that provides, as aof Human Resource or Benefit folks that I know
benefit, health insurance coverage for us and ourhave never heard of it! OBRA is a federal law
family. If so, we are very lucky. Even if that isthat was passed that extends COBRA for an
true, there are some key things that you mightadditional 11 months FOR DISABILITY PURPOSES
want to look at to see if you have ENOUGHONLY!! Why, you ask, is this important? Thanks
coverage.1) From your Human Resourcesfor asking, let's see if I can explain.If you are as
Department (or wherever else you would go tonieve (did I spell this wrong too? sorry!) as I was
get information about your health insurance) getwhen I first started looking to bridge my health
what is called a "Summary Plan Description" (SPD).insurance from working to Medicare, I assumed
This document should be kept where you canthat when I got through all of the hoops to qualify
always find it, as it contains all the information youfor SSDI (Social Security Disabililty Insurance) I'd
will need about what your insurance covers andIMMEDIATELY be eligible for Medicare, RIGHT???
what it doesn't.2) Look up "Coverage" andWRONG!!!!When you FINALLY qualify for SSDI,
"non-coverage" in your SPD.These will tell youyou have to wait for 5 months before you get
what your plan covers and doesn't cover. Youyour first check. AND, the rules state that, you
need to see if, perhaps, you or one of theare eligible for Medicare 2 years (24 months)
covered members of your family has a conditionFROM THE DATE OF YOUR FIRST SSDI
or circumstance that might not be covered,PAYMENT. Well, if you add 24 + 5 you get, 29
where you need additional coverage. For example,months between qualifying for SSDI, and
let's say that your family has a history of cancer;Medicare coverage.OK, I said earlier that COBRA
perhaps your plan restricts the number ofis for 18 months of coverage. Well guess what 18
hospitalization days for care; or, restricts the daysmonths of COBRA + 11 months of OBRA equal -
per condition. In this case, (like my children) you29 months!BUT, there are two catches to OBRA;
might want to get additional "cancer insurance" (Ifirst of all, you have a small window of 30 - 60
think that AFLAC might provide this type ofdays to apply ( this window opens the date of
coverage).It would be a good idea to contact ayour SSDI approval); and, it can cost up to 150%
Health Insurance benefit Broker and ask him/herof your plan coverage amount. BUT, if you have
to read your SPD and see if you have any gapsa "previously existing condition" this might be the
in coverage. They then can help you supplementbest way for you to proceed.Again, it is important
coverage BEFORE YOU NEED IT!NO HEALTHto contact a Health Insurance Broker to help you
INSURANCE COVERAGEYou might be one of thewith the risk/cost ratio of all of these situations.It
growing members of our society that, throughis also improtant to know all of these deadlines as
one circumstance or another, does NOT haveyou plan to ensure that you and your family have
health insurance coverage for your family. In thisimportant health insurance coverage.HIPAAHIPAA
case, I strongly encourage you to contact ais a federal law that is called, briefly, the
Health Insurance Broker and get immediate"portability" law for health insurance. What that
coverage of what is called "catestrophic" (not suremeans is that when you leave a group (read
if I spelled this correctly) coverage. In this type ofcompany-paid plan), the carrier that provided that
coverage, you will generally have large deductibles,plan, must offer to you, another plan, different
but will have coverage if, say, one of you has tofrom COBRA, when you leave the group
go into the hospital.CONTACTING A BENEFITScoverage. Generally this will be what is called a
INSURANCE BROKERWhenever you call or email"bare bones" plan. Again, the best thing for you to
a Health Insurance Broker, it is very important todo is to call/email a Health Insurance/Benefits
prepare ahead of time. WHAT, specifically are youBroker with all of your information: SPD, COBRA
looking for; how much can you afford to payinfo, HIPAA info, needs, cost limits, and let him
every month; what circumstances do you wanther help you find the optimum plan coverage for
to make sure that your family is covered for. Inyou.MEDICAREOK, now, finally, we've reached
this way, you can make sure to focus on yourMedicare! BUT (you really didn't think it would be
critical needs.COBRACOBRA is an acronym ( howthat easy, did you?) if you have qualified for
can I spell acronym correctly, yet not be sureMedicare because of disability, there are
that I spelled catestrophic correctly?) that standsRESTRICTIONS (of COURSE there are!).First of
for: Consolidated Omnibus Budget Reconciliationall, if you are qualifying for Medicare because of
Act. Basically, it is a federal law that allows you todisability, you are probably under the age of 65 -
pay for your Company-paid health insurance, asnormal retirement age.Medicare coverage does
an active member, if you no longer work for thatNOT cover prescription drugs, which, those of us
company for, generally 18 additional months.1)with disabilities probably need, and which cost
COBRA is "triggered" (that is, you, or a coveredlots.But, Congress prescribed that states (all but
member of your family, become eligible for11) offer what is called "Medicare supplement"
COBRA) by events such as the following:plans, some of which do offer prescription
resignation from the company; termination (FORcoverages.
ANY REASON) from the company; divorce of aBUT, these plans ARE NOT REQUIRED TO, and
spouse; a covered chile's birthday makes themdo not, offer these medicare supplement plans
ineligible for coverage. These are the mainthat offer prescription coverages to folks who
"triggering" events for COBRA.2) Now, whenqualify under age 65! So, if you are qualifying
eligible for COBRA, you will be asked to pay forbecause of disability, your medical insurance plan
100% to 105% of the company's employeedoesn't cover one of your primary cost
employee and family coverage amount. Youexpenditures!Here again is where you need to
should get a letter from your company explainingcontact a health insurance/benefit broker. Again,
what that amount will be. BEFORE YOU DECIDEhe/she can work with you, and your specific
TO TAKE COBRA, there are some importantcircumstances, to get you the coverage you
things for you to consider.What will be your cost,need.Hope that this information was helpful to you.
and what will be the coverage for that cost?If you have any questions, please feel to ask
Sometimes the cost is too much for thethem by commenting on this blog, and I'll be
coverage. In these cases, you might want tohappy to get you an answer.About & Carolyn is a
select HIPAA coverage, instead (see HIPAAwebsite designed to assist each person in his/her
below).Or, you might just want to getown unique quest to navigate through the difficult
catestrophic coverage as was mentioned earlier,and often conflicting and misleading information
and wait for full coverage under your nextabout coping with disabilities.
job.Part of this decision should be whether or not