Short-Term Coverage: A Good Alternative to COBRA?

If you’ve offered COBRA continuation coverage to former employees or their spouses, you know it can be an expensive option for them. Fortunately, short-term coverage can be an affordable alternative.

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act of 1985, is a federal law that guarantees employees who lose health coverage due to certain life events an opportunity to temporarily continue that coverage. Qualifying events include retirement, termination of employment (other than by reason of gross misconduct), reduction in hours, death or entitlement to Medicare benefits, divorce or legal separation from the covered employee and loss of dependent child status.

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