OBRA Health Insurance: What it is

What is OBRA Health Insurance? Never heard of it? Don’t worry, you are not alone. Most people I know have not heard of OBRA either. OBRA is an extension of COBRA for the disabled for a period of 11 months.

I was once under the impression that if I qualified for SSDI, I would automatically be eligible for Medicare. I was so wrong. After going through all the complex procedures to be eligible for SSDI, you get your first check after waiting for 5 months. You are then eligible for Medicare only after 2 years from the date of your first SSDI payment. That is a total or 24 +5 = 29 months of waiting.

There are certaing things to remember when you are applying for OBRA. After your SSDI approval, you are eligible for OBRA only in a small window of 30-60 days. The cost may be 150% of the plan coverage amount. It can be the best way to go forward if you have a “previously existing condition”.

Take the help of a health insurance broker for assessing the risk/cost ratio. Also, it is essential to know the plan deadlines so that your family is properly covered for health insurance.