COBRA Continuation of Health Benefits
Learn about eligibility, how to apply, find support and your options for health coverage between jobs.
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What Is COBRA Insurance?
COBRA, or the Consolidated Omnibus Budget Reconciliation Act, is a federal law that allows employees and their families to temporarily continue their employer-provided health insurance after leaving a job or experiencing certain life events that would otherwise end their coverage.
Getting Started with COBRA
- COBRA Eligibility – Find out if you qualify for COBRA coverage.
- Apply For COBRA – Learn the steps to apply for COBRA coverage.
- Cost Of COBRA Insurance – Understand the costs associated with COBRA insurance.
- Customer Service – Get assistance with your medical insurance options.
FAQs on Beginning COBRA Continuation
Manage Your COBRA Plan
- Account Login – Access your COBRA insurance account online.
- Make a Premium Payment – Depending on the plan, online or by mail.
- Canceling Coverage – Steps to cancel your COBRA insurance coverage.
- Verify Coverage – How to verify coverage if denied by provider or pharmacy.
FAQs on Managing Your COBRA
How Does COBRA Work?
COBRA allows individuals and their families to continue group health insurance benefits after certain life events. This federal legislation applies to employers with at least 20 employees on more than 50% of their typical business days in the previous calendar year.
Coverage becomes available when qualifying events such as termination of employment or a reduction in working hours occur, leading to a loss of eligibility for health benefits.
Individuals and their dependents can continue their employer group health plan through COBRA, maintaining coverage for medical and prescription services.
The health continuation benefits last 18 or 36 months, depending on the qualifying event. Individuals continuing their group plan are responsible for the full premiums and any administrative fees.
Steps for COBRA Coverage
- The employer-sponsored health plan ends due to a qualifying event:
- Job termination: Voluntary or involuntary termination resulting in the loss of health coverage.
- Retirement: Allows continued health coverage after leaving an employer.
- Divorce or separation: Qualifies for COBRA due to the loss of health coverage under a spouse’s employer-sponsored plan.
- Adult child ages off plan at 26: Turning 26 qualifies for COBRA because federal law ends eligibility under a parent’s health insurance plan at that age.
- Death of the covered employee: Dependents become eligible for COBRA to ensure continued health coverage after the policyholder’s loss.
- Within 45 days of the qualifying event, the employer sends an election notice to continue workplace insurance.
- Within 60 days of receiving the election notice, individuals may choose to enroll in the health plan.
- Copays, coinsurance, deductibles, out-of-pocket expenses, and insurance cards remain the same for the year.
- The first COBRA premium payment must be made within 45 days of enrollment. Learn more about payment requirements.
- Medical expenses incurred before COBRA coverage begins can be reimbursed. The coverage is retroactive, ensuring no gaps in coverage.
Why Is COBRA Considered Expensive?
The most common feedback about COBRA insurance is that it is considered expensive. This is because individuals are required to pay the full cost of their health insurance premium, which was previously subsidized by their employer, plus an administrative fee of up to 2%. As a result, monthly premiums typically range from $400 to $700 per individual, depending on the plan and coverage.
COBRA Eligibility Check
Eligibility for COBRA coverage can be easily determined. Take a quick eligibility survey to check if the requirements for continuing employer-sponsored health coverage are met.
Availability of Mini-COBRA in Select States
In many states, businesses with a workforce of 19 or fewer employees are obligated to offer continued health insurance coverage to former employees, similar to the federal COBRA regulations. Please be aware that the deadlines and time frames for making a decision about coverage may differ based on state laws.
Find your state in the COBRA State-by-State Guide.
Getting Help with COBRA Options
Consider reaching out to a COBRA Advisor to discuss specific needs and identify the right temporary coverage.
Who We Are
COBRAinsurance.com is a resource for understanding COBRA continuation coverage, including how it works, how to enroll, and how to manage an existing plan.
This website also highlights other health insurance options that may be suitable for individuals and families between employer-sponsored plans.
Exclusions from COBRA Eligibility
While COBRA provides a continuous health coverage for many employees, certain groups and circumstances are not covered by COBRA continuation laws. Federal COBRA applies only to private-sector employers with 20 or more employees, leaving some individuals ineligible for coverage. Additionally, certain employers and situations are excluded from COBRA coverage:
- Federal Employees: Workers employed by the federal government are not covered under COBRA but may have similar rights under separate federal laws, such as the Federal Employees Health Benefits (FEHB) program.
- Church Employers: Organizations considered church employers are exempt from federal COBRA requirements.
- Small Employers: Businesses with fewer than 20 employees are not required to offer COBRA continuation coverage under federal law.
- Gross Misconduct Exception: Employees terminated due to gross misconduct are not eligible for COBRA coverage.
How To Get Health Insurance Between Jobs
Securing health insurance during a period of transition between jobs helps prevent unexpected medical expenses. Reviewing available options can provide uninterrupted coverage until new employment begins.
Here are three ways to remain insured between periods of employment:
- Continuing Current Coverage: COBRA allows individuals to maintain their existing health insurance plan without exclusions or pre-existing condition limitations. This option ensures access to medical care and prescriptions under the same coverage terms as the previous employer-sponsored plan.
- Affordable Marketplace Plans: The Affordable Care Act (ACA) marketplace offers comprehensive plans that are similar to employer-sponsored insurance. Many individuals qualify for federal subsidies, making these plans a cost-effective alternative. Marketplace plans also have limited enrollment periods following qualifying events.
- Short-Term Coverage: Short-term health plans provide temporary month-to-month coverage and can be a practical solution for those in good health or waiting for new employer-sponsored insurance to begin. Explore short-term health plans.
About Choosing Alternatives to COBRA
For those exploring more affordable alternatives, options like short-term health insurance plans, Affordable Care Act (ACA) marketplace coverage, or Medicaid may provide cost-effective solutions depending on individual circumstances. These alternatives, along with COBRA, offer ways to maintain health insurance during gaps between jobs.
Evaluating these options can help identify the most suitable coverage to meet healthcare and budgetary needs during transitional periods.
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*Eligibility for short term medical insurance is based on age and state availability.
