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COBRA
Congress passed the landmark Consolidated
Omnibus Budget Reconciliation Act (COBRA) health
benefit provisions in 1986. The law amends the
Employee Retirement Income Security Act, the
Internal Revenue Code and the Public Health
Service Act to provide continuation of group
health coverage that otherwise might be
terminated. COBRA provides certain former
employees, retirees, spouses, former spouses and
dependent children the right to temporary
continuation of health coverage at group rates.
This coverage, however, is only available when
coverage is lost due to specific events. Group
health coverage for COBRA participants is
usually more expensive than health coverage for
active employees. This is because the employer
typically pays a part of the premium for active
employees while COBRA participants generally pay
the entire premium themselves. It is ordinarily
less expensive, though, than individual health
coverage.
For
more information on COBRA, please go to the
following website:
http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.HTML
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HIPAA
The
Health Insurance Portability and Accountability
Act (HIPAA) was enacted by the U.S. Congress in
1996 and required the Department of Health and
Human Services (HHS) to establish national
standards for electronic health care
transactions and national identifiers for
providers, health plans and employers. It also
addressed the security and privacy of health
data. As the industry adopts these standards for
the efficiency and effectiveness of the nation's
health care system, it will improve the use of
electronic data interchange.
For
more information on HIPAA, please go to the
following website:
http://www.hhs.gov/ocr/hipaa/
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Medicaid
Medicaid is the United States health program for
individuals and families with low incomes and
resources. It is an entitlement program that is
jointly funded by State and Federal governments
and is managed by the State. Among groups of
people eligible for Medicaid are low-income
parents, children, seniors and people with
disabilities. Being poor, or even very poor,
does not necessarily qualify an individual for
Medicaid. Medicaid is the largest source of
funding for medical and health related services
for people with limited income.
For
more information on Medicaid, please go to the
following website:
http://www.medicaid.gov
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Medicare
Medicare is a social insurance program
administered by the United States government
that provides health insurance coverage to
people who are either age 65 and over, or those
who meet other special criteria. It was
originally signed into law on July 30, 1965, by
President Lyndon B. Johnson as an amendment to
Social Security legislation. At the bill-signing
ceremony, President Johnson enrolled former
President Harry S Truman as the first Medicare
beneficiary and presented him with the first
Medicare card.
The
"Original Medicare" program has two parts: Part
A (Hospital Insurance), and Part B (Medical
Insurance). Only a few special cases exist where
prescription drugs are covered by Original
Medicare, but as of January 2006, Medicare Part
D provides more comprehensive drug coverage.
Medicare Advantage plans are another way for
beneficiaries to receive their Part A, B and D
benefits.
For
more information on Medicare, please go to the
following website:
http://www.medicare.gov/
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Medigap
Medigap refers to various private supplemental
health insurance plans sold to Medicare
beneficiaries in the United States that provide
coverage for medical expenses not, or only
partially, covered by Medicare. Medigap's name
is derived from the notion that it exists to
cover the difference, or gap, between the
expenses reimbursed by Medicare and the total
amount charged. A person must be enrolled in
Parts A and B of Medicare before they can enroll
in a Medigap plan. During the open enrollment
period, which begins three months before and
ends three months after the month of an
individuals 65th birthday, a person may obtain a
Medigap plan on a guaranteed issue basis (i.e.
no medical screening required). Outside of open
enrollment, the issuing insurance company will
require medical screening and may obtain an
attending physician's statement if necessary.
Medigap offerings have been standardized by the
Centers for Medicare and Medicaid Services (CMS)
into twelve different plans, labeled A through
L, sold and administered by private companies.
For
more information on Medigap, please go to the
following website:
http://www.medicare.gov/medigap/Default.asp
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Social
Security
Social
Security primarily refers to social welfare
service concerned with social protection or
protection against socially recognized
conditions including, but not limited to,
poverty, old age, disability and unemployment.
Although some publications use the terms "social
security" and "social protection"
interchangeably, social security is used both
more narrowly (to refer only to schemes with the
formal title of 'Social Security') and more
widely (referring to many kinds of social
welfare schemes).
Social
Security may refer to:
Social Insurance, where people receive
benefits or services in recognition of
contributions to an insurance scheme. These
services typically include provision for
retirement pensions, disability insurance,
survivor benefits and unemployment insurance.
Income Maintenance, mainly the distribution
of cash in the event of interruption of
employment which includes retirement, disability
and unemployment.
For
more information on Social Security, please go
to the following website:
http://www.ssa.gov
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