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Consolidated Omnibus Budget Reconciliation Act (COBRA), a health insurance policy, was enacted by the US congress in 1986 for protecting US citizens, from being devoid of health care in the event of your losing job. It gives the right to employees, persons retired their spouses and children a temporary continuation of health insurance coverage in the event of being sacked or retrenched or closure of companies. The Cobra insurance coverage is costlier than regular insurance coverage available for regular employees. This insurance is valid only when there are more than 20 employees or more already covered in the previous year.

These benefits usually covers in and outpatient hospital and physicians care and also provides for surgery with major medical benefits such as dental care and vision care. Cobra insurance policy is unique because it retains the original terms and conditions of the health plan prior to his losing the job. This medical insurance was very essential during the current global finance crisis. The insurance coverage costs two percent more than the usual premium and therefore is costlier than the regular plans. Opting for an insurance policy in Cobra is always a wise decision as it covers the pre-existing insurance conditions for a post 18 months after you leave your job or otherwise.

There are many people who are unable to afford the cost of the policy and provide for alternative plans for persons with good state of health and is appropriate for individuals and family. One has to analyze the plan before opting for its different provisions provided in the health plan. Recently, with global drop down in the economy of different countries the job security is at stake and there it is pertinent to have an insurance policy like Cobra. While this health insurance is very expensive, government subsidy has made it affordable, now. The Federal Government, as of March 1st, 2009, has subsidized the cost of COBRA insurance keeping in view the job cut, which may prevail at the same rate or may aggravate in the future.

The only caution one should apply and be vigilant is to apply to the policy 60 days before any mishap like lay off or retrenchment occurs. Eligible beneficiaries must be given time to choose whether to elect COBRA insurance coverage or not. A covered employee or the spouse may elect COBRA insurance coverage on behalf of all other beneficiaries, and the parent or legal guardian can enroll on behalf of a minor child.

In this insurance directive the employers are bound by mandate to inform their legitimate employees about the optional Cobra insurance policy. Although, this policy is for a temporary period but it is extremely beneficial to them and their families at least for a period of 18 months and not beyond that. The active drawback of this policy is that you will not get coverage if you are detected of serious diseases like cancer or similar diseases.