Are You Eligible for COBRA?

What Happens When You Qualify For COBRA Health Insurance?

If you’re eligible for COBRA coverage and interested in getting it, you’ll have an open enrollment period. Once your insurance coverage expires, you will receive a letter within 45 days. This letter will explain the enrollment process for COBRA to maintain your previous work plan. To keep your old health plan, you must respond and finish the application within 60 days.

What Are The Eligibility Requirements For COBRA Insurance?

To be eligible for COBRA continuation coverage, you must meet the following requirements:

1. Previous Enrollment: You must have enrolled in your employer’s group health plan while you were employed.
2. Qualifying Event: A qualifying event (other than gross misconduct) that results in losing your employer-based health coverage must occur. Qualifying events are when someone loses their job, works less, gets divorced or legally separated or the covered employee dies.
3. Active Health Plan: The employer’s health plan must remain active and provide coverage to current employees. If the plan is discontinued or the employer goes out of business, you may not have access to COBRA coverage.
4. Employee Status: You must have been an employee of a qualified employer that offers a group health plan. The COBRA law applies to employers with 20+ employees, but some states have their own laws for smaller employers.

What Are The Qualifying Events For Employees In The Workplace?

These events apply to the covered individual who holds employer-sponsored health insurance coverage. These events allow you to stay covered for up to 18 months.

• Job termination (quit or fired)
• Retirement
• Layoff or furlough
• Reduction in hours where you lose health benefits

What Are The Qualifying Events For Spouses and Dependent Children?

Relationship changes, such as divorce or legal separation, affect qualified beneficiaries, between insurance policy dependents and the covered employee. In these situations, you may qualify for COBRA coverage for up to 36 months.

• Legal divorce or separation from policyholder
• Death of the covered employee
• Dependent child turning age 26