COBRA in Michigan
Michigan is a state in the process of economic change. The old economic emphasis on heavy manufacturing is adjusting as the automotive industry and other manufacturing staples are edged out by information technology and other high-tech industry. Michigan workers may find themselves without a job as their company re-tools. Losing a job often means losing health insurance, including coverage for the entire family.
Other circumstances that can cause a loss of coverage include children reaching an age that is no longer covered, a divorce, or the death of the employee, leaving the remaining family uninsured. In these and other situations, each member of the covered family may apply for health insurance continuation of coverage under a federal law called the Consolidated Ominbus Budget Reconciliation Act (COBRA).
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COBRA in Michigan
- If you have lost your insurance through the loss of a job, make sure that you send in an application for COBRA insurance within the first 60 days after your insurance ends. Your employer is required by federal law to give you the information and an application for extending your medical benefits through COBRA.
- You are entitled to keep the health benefits you had in your job for several months, depending on the size of the firm you worked for, but you will have to pay the full premium.
- Your insurance provider is not allowed by law to cancel your insurance because you get sick. They must honor the policy as long as you pay the premiums on time — up to your COBRA eligibility limits.
- If you were a covered dependent but have lost those benefits because of age or because you are not a full-time student, you may apply for COBRA under your own name. Coverage of this type can last for up to 36 months.
- Continuing your medical insurance through COBRA, while expensive, is especially important if you have any pre-existing medical conditions that a new policy may not cover.
- After you get on COBRA coverage, research different personal health insurance policies, including PPO plans, HMO plans, and temporary health insurance. You may be able to substantially reduce your medical insurance premiums considerably if you enroll in your own policy.
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