The Cobra Insurance Rules

The Cobra Insurance Rules are contained within the Consolidated Omnibus Budget Reconciliation Act of 2009. That is the most recent federal law surrounding healthcare reform. One provision of the act makes it easier for people who dropped their health coverage plans to maintain them through the patch-up process. The process involves having the canceled plans terminated and then the insured being automatically re-enrolled using new healthcare plans.

According to the act, a person who has dropped their group health policy and plans after going through a gap of at least 60 days must re-apply and get approved for coverage. The new application process includes a request for a list of current health issues. Then the insurer will look through that list to try and determine any potential problems. If the list of issues is deemed non-correctable, then the insurer must explain why the issue is not correct. Once the insurer has provided that explanation, then the applicant may receive approval to maintain the coverage.