Cobra Insurance in NJ: Everything You Need to Know

If you live and work in New Jersey and have recently been laid off or had your work hours reduced, you may be eligible for COBRA continuation coverage. COBRA insurance is a federal law that allows employees who lose their health insurance benefits to continue receiving coverage for a limited time. In this article, we’ll discuss everything you need to know about COBRA insurance in NJ, including who is eligible, how to enroll, and what it covers.

What is COBRA Insurance?

COBRA stands for Consolidated Omnibus Budget Reconciliation Act, a federal law that allows employees who lose their health insurance benefits to continue receiving coverage for a limited time. COBRA applies to businesses with 20 or more employees, and eligible employees can continue their health insurance coverage for up to 18 months after their employment ends, or up to 36 months in certain circumstances.

Who is Eligible for COBRA in NJ?

In New Jersey, both state and federal COBRA laws apply. To be eligible for COBRA coverage in NJ, you must have been enrolled in a group health plan through your employer that covered at least 20 employees. You must also have lost your job or had your hours reduced to the point where you are no longer eligible for health insurance benefits.

Additionally, your employer must still be in business and offer a group health plan to current employees. If your employer goes out of business or stops offering health insurance to current employees, you will no longer be eligible for COBRA coverage.

How to Enroll in COBRA Insurance in NJ

If you are eligible for COBRA coverage in NJ, you will receive a notice from your employer within 14 days of your last day of employment or loss of coverage. This notice will explain your rights to continue your health insurance coverage and give you a deadline for enrollment.

To enroll in COBRA coverage, you must complete and return the enrollment form and pay the premium within the specified timeframe. Your coverage will begin on the date of your last day of coverage under your employer’s plan.

What Does COBRA Insurance Cover?

COBRA insurance provides the same coverage as your employer’s group health plan, including medical, dental, and vision benefits. However, you will be responsible for paying the full cost of the premium, plus a 2% administrative fee.

The cost of COBRA coverage can be much higher than what you were paying as an employee, as your employer will no longer be contributing to the cost of your health insurance. However, if you have a pre-existing condition or are currently undergoing treatment, COBRA coverage can be a valuable option to ensure continuity of care.

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Conclusion

COBRA insurance can be a valuable option for those who have lost their job or had their hours reduced in NJ. If you are eligible for COBRA coverage, make sure to carefully review your enrollment notice and deadlines, as well as the cost of coverage. If you have any questions or concerns, don’t hesitate to reach out to your employer or a health insurance professional for guidance.