Daily Financial Intel | health insurance

Health Insurance During Transition Periods

Mar 25, 2020 7:42:14 AM / by The Retirement Group (800) 900-5867 posted in CAM Annuity, Chevron, ERB, ESRO, ExxonMobil, Financial Planning, health insurance, Hewitt, In Service Withdrawal, Lump Sum, Northrop Grumman, Option 1 Withdrawal, Pension, Pension Options, Retirement, Retirement Planning, Verizon, 401K, 72t, Age Penalties, Benefit Commencement Date, Workshops, TRG, Unemployment

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Introduction

Periods of transition can occur when you least expect them. Your company might go through a period of downsizing that results in your layoff. You could suffer a serious injury and become disabled. Your spouse could suddenly pass away, or your marriage could end in divorce. Fortunately, there are several options for continuing health insurance coverage that may be available to you during these transition periods.

In 1986, the federal government passed COBRA, a law that provides for (among other things) continued access to health insurance for people who lose their coverage due to termination of employment or a reduction in work hours, or certain other triggering events. In addition, state law may contain additional provisions.

In 1996, the Health Insurance Portability and Accountability Act (HIPAA) expanded on COBRA and made it easier to continue health-care coverage during transition periods.

In 2003, the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 created the health savings account (HSA), a tax-advantaged vehicle that permits individuals to save money that can be used to pay medical insurance policy premiums and certain uncovered medical expenses. These savings can help you weather transition periods.

COBRA Coverage: Health Care During Transitional Periods

Mar 18, 2020 8:41:20 AM / by The Retirement Group (800) 900-5867 posted in CAM Annuity, Chevron, ERB, ESRO, ExxonMobil, Financial Planning, health insurance, healthcare, Hewitt, In Service Withdrawal, Lump Sum, Northrop Grumman, Option 1 Withdrawal, Pension, Pension Options, Retirement, Retirement Planning, Verizon, 401K, 72t, Age Penalties, Benefit Commencement Date, Workshops, TRG

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What is COBRA?

The term "COBRA" is commonly used to refer to certain provisions of Title X of the Consolidated Omnibus Budget Reconciliation Act of 1986. This law provides an opportunity for employees and their dependents who have been covered by an employer-sponsored health insurance plan to continue coverage under circumstances where such coverage might otherwise have been terminated. The covered employee is entitled to COBRA coverage only in cases of termination or reduction in hours. In addition, there are several situations in which an employee's spouse and dependent children may be eligible for COBRA benefits. The duration of COBRA coverage is limited and depends on the reason why existing coverage is being terminated.

COBRA can be an invaluable resource, particularly for those who find themselves without health insurance due to circumstances beyond their control (e.g., layoff or reduction in working hours). Because individual health insurance is generally much more expensive than comparable group insurance, many of these individuals might otherwise be forced to go without health insurance. This can be a dangerous gamble. COBRA provides a way to retain health insurance coverage at a reasonable rate.

Health Insurance Made Simple

Feb 26, 2020 9:54:24 AM / by The Retirement Group (800) 900-5867 posted in CAM Annuity, Chevron, ERB, ESRO, ExxonMobil, Financial Planning, health insurance, healthcare, Hewitt, In Service Withdrawal, Lump Sum, Northrop Grumman, Option 1 Withdrawal, Pension, Pension Options, Retirement, Retirement Planning, Verizon, 401K, 72t, Age Penalties, Benefit Commencement Date, Workshops, TRG

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Let's face it--in today's world, health insurance is a necessity. In fact, most U.S. citizens and legal residents must have qualifying health insurance or face a penalty tax. Yet the cost of medical care is soaring higher every year, and it's becoming increasingly difficult (and in some cases, impossible) to pay medical costs out of pocket. Whether you already have health insurance or want to get it, here's some basic information to help you understand it.