Group health insurance is the cheapest health insurance option in America today. COBRA legislation has a huge impact on affordable health care because it helps individuals retain membership of group health insurance schemes that they joined as employees of a specific organization even after losing their jobs.

Offering health insurance as part of job profile is a very common benefit offered by employers. Employers contract with health insurance companies and insure health of a large number of employees at bulk rates. This is a win-win situation for everybody involved. Health insurance companies get a large number of clients at once. Employers can attract better talent and incur relatively less expenditure. Further, the expense is tax deductible. Employees access affordable health insurance and bulk of premium is paid by the employer.

COBRA legislation enters the group health insurance picture when the individual loses his or her job. According to this legislation, an individual can retain membership and enjoy health care benefits even after losing his or her job. Protection extends to twelve months and can be pushed further by another six months. The employee should not be fired for illegal activities or gross negligence.

Premium is paid out of the pocket as past employers are no longer liable. Although expensive, this option prevents lapses in health cover. Any lapse in health insurance results in significant illnesses exclusions when reapplying for health insurance. Continuation of health cover, even at higher outflow, is acceptable.

This legislation helps individuals enjoy health care when they are unemployed and in process of searching for new jobs. Individuals who were laid off during the recent financial crisis enjoyed subsidy from the government where the latter paid 65% percent of the health insurance premium under COBRA.

The latest amendments to this legislation seek to extend protection to the LGBT community as well. This legislation is making a huge impact in offering affordable health cover. The individual may have to pay health insurance premium out of own pocket until he or she finds another job. Once a new employer promises to pay health benefits, the old situation will return where bulk of the premium is paid by the employer.

Individuals relying on COBRA and group health cover enjoy better protection from unfair practices of insurance companies. An individual may have little voice when battling a big firm. However, unfair practices by a health insurance company regarding a group scheme may result in loss of significant business if the employer decides to take up the fight on behalf of an employee.

Using COBRA is not mandatory. This helps individuals move over to personal schemes if they desire. For those who need assistance, COBRA is a very useful option.