Cobra Insurance Colorado: Understanding COBRA Benefits in the State of Colorado

If you’re an employee of a company with 20 or more workers in Colorado, you may have heard of COBRA insurance. COBRA is a federal law that allows you to continue your employer-sponsored health insurance coverage after leaving your job, getting laid off, or experiencing a reduction in work hours. This article will explain everything you need to know about COBRA insurance in Colorado.

What is COBRA Insurance?

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. It’s a federal law that gives employees and their families the right to continue their employer-sponsored health insurance coverage for a limited period of time after certain qualifying events, even if you would normally lose coverage. COBRA coverage is usually more expensive than your current insurance, but it’s often less expensive than buying an individual plan from a health insurance provider.

COBRA insurance applies to companies with 20 or more employees. If you work for a smaller company, you may still be eligible for continuation coverage under Colorado state law.

Who is Eligible for COBRA Insurance in Colorado?

COBRA insurance is available to employees and their families who lose health insurance coverage due to certain qualifying events, including:

If you or your family members experience any of these qualifying events, you have the right to continue your health insurance coverage under COBRA. Your employer is required to provide you with information about COBRA coverage within 14 days of the qualifying event.

How Long Does COBRA Coverage Last in Colorado?

In Colorado, COBRA insurance coverage can last for up to 18 months for most qualifying events. However, if you or a family member experiences a disability or a second qualifying event during your COBRA coverage period, you may be eligible for an extension of up to 36 months of coverage.

How Much Does COBRA Insurance Cost in Colorado?

COBRA insurance is usually more expensive than your current insurance, as you will be responsible for paying the entire premium plus a 2% administrative fee. However, COBRA coverage is often less expensive than buying an individual plan from a health insurance provider.

Your employer is required to provide you with information about your COBRA premium within 14 days of receiving your election notice. Your premium cannot exceed 102% of the cost of the plan for active employees.

What Happens if I Don’t Elect COBRA Coverage in Colorado?

If you don’t elect COBRA coverage within 60 days of receiving notice of your right to continue coverage, you will lose your insurance benefits. It’s important to carefully consider your options before making a decision, as you may not be able to enroll in a new health insurance plan until the next open enrollment period.

FAQ

1. Can I Keep My Same Health Insurance Policy on COBRA?

Yes, you can keep the same health insurance policy under COBRA. You will be responsible for paying the entire premium plus a 2% administrative fee.

2. Can I Change My Health Insurance Policy on COBRA?

No, you cannot change your health insurance policy under COBRA.

3. How Long Can My Dependents Stay on COBRA?

Your dependents can stay on COBRA for up to 18 months for most qualifying events. However, if you or a family member experiences a disability or a second qualifying event during your COBRA coverage period, you may be eligible for an extension of up to 36 months of coverage.

4. What Happens if I Get a New Job with Health Insurance While on COBRA?

If you get a new job with health insurance while on COBRA, you can usually cancel your COBRA coverage and enroll in the new plan. However, you may have to wait until the next open enrollment period to enroll in the new plan.

5. Can I Enroll in a New Health Insurance Plan During COBRA Coverage?

You may be able to enroll in a new health insurance plan during your COBRA coverage period if you experience a second qualifying event, such as getting married or having a child. However, you may not be able to enroll in a new plan until the next open enrollment period.

Conclusion

COBRA insurance can be a valuable option for employees and their families who experience qualifying events that would normally result in a loss of health insurance coverage. If you’re eligible for COBRA in Colorado, it’s important to carefully consider your options and costs before making a decision.