Most of us usually rely on the experience of others to understand how to deal with similar situations. The real problem with this is that benefits are person-centered. Benefit programs fit each individual differently, based on a variety of facts and conditions, such as:

You can lose your right to OBRA if you wait to apply when COBRA ends. This is because you need to provide proof of disability within 60 days of receiving your Social Security Award Letter.

Paying OBRA premiums can be an additional and unplanned financial burden. If you chose to discontinue employer-sponsored health coverage, you will need to consider other options to pay for health coverage needs. Many individuals with disabilities deny themselves OBRA and instead choose Medi-Cal or Medicare. Be aware that not everyone is eligible for Medi-Cal or Medicare. In some cases, using public health coverage can cost more than OBRA premiums. You may be able to have your OBRA premiums paid through either Medi-Cal/HIPP or CARE/HIPP (for HIV/AIDS), if you meet certain disability and financial eligibility requirements.

There are strict deadlines to apply for OBRA, to pay premiums, and to maintain eligibility for the program. Awareness of these deadlines will enable you to continue coverage without interruption.

Your health coverage can be cancelled if you do not pay premiums on time. If your policy is cancelled due to non-payment, the law allows for one 30 day grace period per any 12 month period. If your premium payments are made within 30 days, the policy will be reinstated.

When you become eligible for Medicare, whether you elect this coverage or not, you will lose your right to continue coverage through OBRA. OBRA is designed to transition you from COBRA to Medicare. When OBRA ends you should be eligible for Medicare. You will need to reconsider your health coverage options at this time.

When OBRA ends you should be eligible for Medicare. You will need to reconsider your health coverage options at this time since Medicare has almost no prescription drug coverage and very high co-payments.