Severance Agreement Continuation Of Health Benefits

When the Affordable Care Act (ACA) was signed about nine years ago, many employers wondered what would happen to COBRA (also known as the continued coverage of the Consolidated Omnibus Budget Reconciliation Act of 1985). ACA scholarships seemed ready to offer affordable, sometimes subsidized, health care options. Why would anyone continue to opt for an expensive cobra blanket? And yet, COBRA looks stronger than ever. The risk is usually highlighted somewhat in this sense. Most benefit plans have eligibility rules. These rules often require a worker to work a certain number of hours or maintain their job in order to participate in the plan. As soon as the worker`s employment ceases or he no longer works the required number of hours, he loses his right to claim. Can an employee pay their COBRA premiums before taxes on severance pay? There are many reasons why laid-off employees choose COBRA over other insurance options….