What is Cobra Health Insurance?

COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that was passed in 1986 which provides workers and their families who have lost their employer-sponsored health insurance with the option to continue their coverage for a limited amount of time. This article will discuss everything you need to know about COBRA insurance, including eligibility, benefits, costs, and more.

Eligibility for COBRA Insurance

To be eligible for COBRA insurance, you must have been covered by a group health insurance plan sponsored by an employer that had at least 20 employees. You must have also experienced a qualifying event that caused you to lose your health insurance coverage. Qualifying events include:

Once you experience a qualifying event, your employer must notify you about your COBRA eligibility within 14 days. You then have 60 days to decide whether or not you want to enroll in COBRA coverage.

Benefits of COBRA Insurance

The benefits provided by COBRA insurance are identical to the benefits provided by your employer’s group health insurance plan. This means that you will have access to the same doctors, hospitals, and prescription drugs that you had while you were employed. However, you will be responsible for paying the full cost of your health insurance premiums. Your employer will no longer contribute towards your health insurance costs as they did while you were employed.

COBRA coverage typically lasts for up to 18 months, but in some cases, it can last for up to 36 months. The length of your COBRA coverage depends on the reason why you lost your health insurance coverage.

Costs of COBRA Insurance

The cost of COBRA insurance can be much higher than what you paid for health insurance while you were employed. This is because your employer is no longer contributing towards the cost of your health insurance premiums. In addition, your employer may have negotiated a better rate for group health insurance coverage than what is available to individuals.

When you enroll in COBRA coverage, you will be responsible for paying the entire cost of your health insurance premiums, including any portion that your employer may have previously paid. You may also be required to pay an administrative fee which can range from 2% to 4% of your monthly premium.

FAQ About COBRA Insurance

1. How long does COBRA coverage last?

COBRA coverage typically lasts for up to 18 months, but in some cases, it can last for up to 36 months.

2. Can I enroll in COBRA coverage if I quit my job?

No, you are only eligible for COBRA coverage if you lose your job due to a qualifying event such as layoff, reduction in hours, or termination.

3. Can I change my COBRA coverage?

No, you cannot change your COBRA coverage. You must continue with the same health insurance plan you had while you were employed.

4. Can my dependents enroll in COBRA coverage?

Yes, your dependents are also eligible for COBRA coverage if they were covered under your employer-sponsored group health insurance plan.

5. Can I sign up for COBRA coverage after the 60-day enrollment window?

No, you must enroll in COBRA coverage within 60 days of receiving notification from your employer about your eligibility.

Conclusion

COBRA insurance provides a safety net for workers and their families who have lost their employer-sponsored health insurance coverage. While the cost of COBRA insurance can be much higher than what you paid while you were employed, it can provide peace of mind knowing that you and your family have continued access to healthcare. If you have experienced a qualifying event that caused you to lose your health insurance coverage, be sure to explore your options for COBRA insurance.