What are the essential differences between COBRA and HIPAA?

"JFAD" gave some good information about the two, but here's more:

1) COBRA is a federal law (mirrored by some states) that enables a person to continue their group coverage although they've lost eligibility due to a "qualifying event." HIPAA is a group of federal laws, one of which contains a "portability provision." This provision enables a person with previous group-based health coverage that hasn't been lapsed for more than 63 days to either a) replace the coverage with another group policy (for example, moving from one employer to another and picking up the second employer's plan); or b) obtain an individual policy after COBRA has run out from either an insurer or a state high risk pool.

2) No evidence of insurability is required to elect COBRA. A pre-existing condition exclusionary period usually won't apply to COBRA coverage because of the length of time the person's coverage has been in force. Under HIPAA, if a person permits their previous group-based coverage to lapse more than 63 days, a person seeking an individual policy will be medically underwritten, and the insurer may exclude conditions from coverage, or decline to cover the person; if the person is applying for group coverage, a pre-existing condition exclusionary period may be applied.

3) COBRA guarantees that you will continue to pay the group rate, plus a "processing fee;" HIPAA does not guarantee that you be given a group rate if you're applying for an individual policy. In fact, you may be charged up to 200% of the standard rate for a non-medically underwritten individual HIPAA policy (this may vary by state).

4) COBRA is not available to employees of all employers; HIPAA applies to all persons working for all employers.

I hope this helps.

Two major federal laws can help people keep their health insurance coverage when leaving their jobs. The Comprehensive Omnibus Benefits Reform Act of 1986 (COBRA) and the Health Insurance Portability and Accountability Act of 1996 (HIPAA) have made great strides in bridging gaps of insurance coverage for people who had/have group health plan coverage. Unfortunately, these Acts do little to help people who need individual insurance.

COBRA

If someone has group health insurance through his or her employer, that person and his/her dependents can continue that coverage for eighteen months if a "qualifying event" takes place. The most common qualifying events are when the employee is terminated (including if the employee quits), or when the employee's hours are cut to a level that makes him no longer eligible for the group insurance of the employer. However, COBRA coverage is not an option if the employee is fired for "gross misconduct."

HIPAA

People with long term health conditions are often reluctant to leave jobs because they are afraid pre-existing condition clauses will limit coverage of any such conditions under a new insurance plan. This is of particular concern to people with epilepsy who can not physically or financially afford any lapse in health insurance coverage. HIPAA limits the amount of time an insurer can refuse to cover pre-existing conditions to twelve months. HIPAA also ensures that in some cases there is no waiting period for new coverage. However, an insurer is still not required to cover every condition and disability. In some cases, they can still deny coverage altogether for certain conditions as long as the discrimination is based on sound actuarial data. But so long as epilepsy, or any other condition, is covered under a new plan, the pre-existing condition waiting period can be no longer than twelve months.

For more information regarding HIPAA and COBRA and other health programs, visit the Department of Labor http://www.dol.gov/

Cobra when you loose your job

Completely different animals. COBRA is a supplemental insurance typically offered to someone who has been terminated from a company group insurance plan. HIPPA is the Human Information Personal Privacy Act enacted by congress to keep your medical information confidential.

COBRA is insurance you can't afford because you're unemployed, and HIPPA is medical records you can't see because it's illegal.

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