Cobra Insurance in Florida: Everything You Need to Know

If you have recently lost your job in Florida, you may be eligible for COBRA insurance. COBRA stands for Consolidated Omnibus Budget Reconciliation Act, and it is a federal law that allows employees to continue their health insurance coverage after leaving their job, as long as they pay the full premium themselves. Read on to learn more about COBRA insurance in Florida and how it can benefit you and your family.

What is COBRA Insurance?

COBRA insurance is a continuation of the same group health insurance coverage you had while you were employed. It allows you to keep the same health plan, doctors, and benefits, but you will be responsible for paying the entire premium yourself. This includes the portion that your employer used to pay for you.

COBRA insurance is available to employees who lose their job due to voluntary or involuntary reasons. This includes layoffs, quitting, being fired, or having your hours reduced to the point where you are no longer eligible for benefits. Dependents, such as a spouse or children, may also be eligible for COBRA insurance if the primary policyholder becomes ineligible due to a qualifying event.

The length of time that COBRA insurance lasts depends on the qualifying event. For employees who lose their job, it typically lasts for 18 months. However, if the qualifying event is due to divorce or the death of the primary policyholder, it may last for up to 36 months.

How Do You Enroll in COBRA Insurance in Florida?

If you become eligible for COBRA insurance, your employer is required to notify you within 14 days of your qualifying event. You will then have 60 days to decide whether or not to enroll in COBRA insurance. If you do decide to enroll, you will need to complete the enrollment forms and pay the first premium within 45 days.

If you miss the enrollment window or do not pay your premiums on time, you will lose your opportunity to enroll in COBRA insurance. This means that you will have to find a new health insurance plan on your own.

How Much Does COBRA Insurance Cost in Florida?

The cost of COBRA insurance in Florida varies depending on the health plan and the employer. However, it typically costs more than your previous group health insurance plan because you are responsible for paying the entire premium yourself.

Florida law allows COBRA premiums to be charged up to 102% of the cost of the health plan, which includes both the employee and employer portion. This means that you may end up paying more for COBRA insurance than you were paying while you were employed.

Can You Apply for a Subsidy to Help Pay for COBRA Insurance?

Under the American Rescue Plan Act (ARPA), certain individuals may be eligible for a subsidy to help pay for COBRA insurance. The subsidy covers 100% of the COBRA premium for eligible individuals for up to six months between April 1, 2021, and September 30, 2021.

To be eligible, you must have lost your job involuntarily or had your hours reduced and be eligible for COBRA insurance. You must also not be eligible for Medicare or other group health insurance coverage. You must enroll in COBRA insurance during the subsidy period and notify your employer that you want to receive the subsidy. Your employer will then be reimbursed for the subsidy by the federal government.

FAQ

Q: Can COBRA insurance be extended beyond the normal time period?

A: In certain circumstances, COBRA insurance can be extended beyond the normal time period. This may occur if you become disabled or if a second qualifying event occurs, such as a divorce or the death of the primary policyholder.

Q: Are all employers required to offer COBRA insurance?

A: Employers with 20 or more employees are required to offer COBRA insurance. However, some states have their own continuation coverage laws that apply to smaller employers.

Q: Can you cancel COBRA insurance at any time?

A: Yes, you can cancel COBRA insurance at any time. However, you will not be able to enroll in a new health insurance plan until the next open enrollment period or if you experience another qualifying event.

Q: Can you switch to a different health insurance plan while on COBRA insurance?

A: No, you cannot switch to a different health insurance plan while on COBRA insurance. You must remain on the same health plan that you had while you were employed.

Q: What happens if you do not pay your COBRA premiums on time?

A: If you do not pay your COBRA premiums on time, you will lose your coverage. You will not be able to enroll in a new health insurance plan until the next open enrollment period or if you experience another qualifying event.

Conclusion

COBRA insurance in Florida can provide vital health insurance coverage for individuals and their dependents who have recently lost their job. It allows you to keep the same health plan and benefits, but you will be responsible for paying the entire premium yourself. If you are eligible for COBRA insurance, it is important to carefully consider your options and enroll within the designated enrollment window. If you have any questions or need assistance, contact your employer or a qualified health insurance professional.