COBRA And Other Health Coverage In United States

There is much health insurance coverage available in the U.S. tailored to meet people’s health needs, preferences and budget. The choices are:

* Health maintenance organization (HMO)-an organization of healthcare providers (e.g. doctors and hospitals) that have contracted with an insurance company to offer their services at a fixed price

* Preferred provider organizations (PPOs)-like HMO but more loosely organized and not restrictive

* Point of Service Plan (POS)-like HMO and PPOs but the insured person can go out of the network list; however, medical cost will be shouldered by that person if he chooses to do so

* Indemnity Plan/Fee-for-Service Plans and Traditional Coverage-the insured person is free to visit any doctor or hospital; costs will be paid by that person and will be reimbursed by the insurance company

* Health Savings Account (HSA)-individually owned account used to cover present and future medical bills

* Flexible Spending Account (FSA)-members can use pre-tax dollars for certain medical and dependent care bills; contributions come from their paychecks

* Health Reimbursement Arrangement (HRA)-employer funds the account to reimburse qualified medical bills of employees; dependent upon the company’s financial health and the employer can amend or cancel it

Another type of coverage is the continuation health coverage or COBRA. But do you know the COBRA continuation health coverage and how it works? COBRA stands for Consolidated Omnibus Budget Reconciliation Act. This statute was passed by the Congress in’86 that amended the Employee Retirement Security Act, Public Health Service Act, and the Internal Revenue Act.

The purpose of COBRA is to provide temporary continuation of group health insurance coverage to former employees, retirees, spouses, former spouses, and dependent children that should have ended.

Because of the circumstance, people under this coverage pay higher premiums than their active employee counterpart because they shoulder the whole amount of the premium. However, is still cheaper than an individual health insurance.

People who were subject to voluntary or involuntary job loss, transition between jobs, reduction of working hour, divorce, death and other life circumstances are qualified for this coverage. For more information about COBRA continuation health coverage, visit the official website of the United States Department of Labor’s website http://www.dol.gov/ .

Knowing the available health insurance coverage in the US can make health insurance policy shopping uncomplicated. Get health insurance quotes from different insurance providers. Use the internet for hassle-free comparisons of insurance rates, premiums and charges. You can also talk with an insurance provider agent in your place.