With the new health care reform laws, will COBRA insurance still be retroactive and how does this works?
Yes, COBRA Benefits Are Retroactive With No Lapse In Coverage
The Federal COBRA Health Insurance Act requires all businesses with 20 or more employees to offer a continuation of the health insurance after job loss. When you elect COBRA continuation coverage, the effective date begins the date after your employer sponsored health benefits had ended. Your former employer’s insurance plan administrator has 45 days to notify you of your right to continue workplace insurance. If you do not choose this continuation of benefits, you will need to formerly waive your right to COBRA. If you elect to continue your workplace coverage, you will pay the entire COBRA premium. This includes what your employer was paying and a 2% administration fee.