COBRA Insurance Information Resource
Helping workers navigate temporary medical insurance options while between jobs and health care plans.
What Is COBRA Insurance?
COBRA is a federal law. Not a company. The Consolidated Omnibus Budget Reconciliation Act or COBRA, is a law that gives workers and their families the right to keep their employer’s group health plan after that insurance would end due to job loss or changes in the immediate family.
Is COBRA Right For You?
The mission of the COBRA Insurance website is to help workers with their continuing health insurance options. Learn more about when you should continue coverage or if an affordable alternative to COBRA is your best option.
When COBRA Is Too Expensive
The cost of COBRA insurance is high because you are now paying the full health insurance premium, including the portion your previous employer was paying.
A Short-Term medical plan is an affordable alternative to COBRA continuation of benefits. These temporary health insurance plans are a popular option and available in most states to cover gaps between major medical plans. These plans are available on private health insurance marketplaces.
COBRA Knowledge Base
Find hundreds of questions and answers collected over the past 20 years regarding the rules of COBRA insurance. Jump into the searchable knowledge base and learn more.
How Does COBRA Insurance Work?
COBRA is a federal law that allows workers who leave a job (for any reason) or have a qualifying family event happen (like divorce or death) the right to remain on the same health insurance plan they previously had.
Who May Apply For COBRA?
If the company you work for employs over 20 workers and you were covered on the employer’s group medical plan, you are allowed to apply for COBRA and keep your same health benefits you had while working.
Mini-COBRA is Available In Some States
Depending on the state you live in, some businesses with 19 or fewer employees are required to offer a continuation of health insurance. These laws are similar to federal COBRA, but oftentimes have different deadlines for employer election notices and the length of time a former workers must choose. Find out if your state has a Mini-COBRA coverage continuation law and see if it applies to your situation.
Alternative Insurance Options
When you’re facing a loss of medical coverage due to temporary gaps in employment or another factor, purchasing COBRA coverage could initially seem like the right choice to protect your health and finances. Consider these three reasons why short-term health insurance may be a better solution than COBRA.
COBRA Eligibility
If the qualifying event was workplace related like quitting your job, getting fired or laid off you are eligible for up to 18 months of coverage. If the special enrollment period is triggered by a family event such as divorce or death in the family, the length of COBRA coverage is longer.
Employer Insurance Continuation Election Notice
Companies are required to employees of the right to elect COBRA within 44 days from when insurance coverage is lost. Employers will want to learn more about their notification responsibilities.
COBRA Coverage Is Retroactive? Yes it is.
After your former employer sends you the COBRA election paperwork, you then have 60 days to respond. Don’t worry, if something happens between now and then, the insurance coverage is retroactive to the date that you lost coverage.
Continuing Coverage Is Expensive
Your previous employer isn’t responsible for your medical bills which includes the full insurance premium. You will pay all of the COBRA premium.
