If you’re like most people, you probably get your health insurance through your job. But what happens if you lose your job? Fortunately, there is a program called COBRA that can help you keep your health insurance coverage even if you’re no longer employed.
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, and it’s a law that requires employers to allow employees to continue their health insurance coverage after they leave their jobs.
Qualifying for COBRA Health Insurance
To be eligible for COBRA, you must have been covered by a group health insurance plan at the time you left your job. Additionally, your former employer must have 20 or more employees.
Employees
If you’re an employee, you’re eligible for COBRA if you left your job for any reason other than gross misconduct. This includes quitting, being fired, or getting laid off.
Spouses
If you’re the spouse of an employee, you’re eligible for COBRA if your spouse died, divorced you, or became eligible for Medicare.
Dependent Children
If you’re a dependent child of an employee, you’re eligible for COBRA if you lost your coverage because the employee died, divorced you, or became eligible for Medicare.
COBRA Benefits and Available Coverage
Under COBRA, you can continue your existing health insurance coverage for up to 18 months (36 months in some cases). This means that you’ll still have the same coverage, including prescriptions, that you had while you were employed.
Cost of COBRA Health Insurance
The cost of COBRA health insurance can be expensive, as you’ll likely have to pay the entire premium yourself. However, there are some government programs that can help with the cost of COBRA, such as the Premium Tax Credit.
Early Termination of COBRA Health Insurance
COBRA health insurance can be terminated early in certain circumstances, such as if you become eligible for Medicare or get another job with health insurance coverage.
Pros and Cons of COBRA Health Insurance
COBRA health insurance can be a good option if you need to maintain your health insurance coverage after leaving your job. However, it can be expensive and is only available for a limited time.
Managing a High COBRA Premium
If you’re struggling to pay your COBRA premium, there are some options available to help you. You may be able to get a subsidy from the government, or you could look into other health insurance options.
Government Jurisdiction Over COBRA
COBRA is a federal law, so it’s overseen by the US Department of Labor. However, state governments also have some jurisdiction over COBRA.
Applying for COBRA Health Insurance
If you’re interested in applying for COBRA health insurance, you should contact your former employer. They should be able to provide you with the necessary forms and help you get started.
The Bottom Line
COBRA health insurance can be a good option if you need to maintain your health insurance coverage after leaving your job. However, it can be expensive and is only available for a limited time. If you’re struggling to pay your COBRA premium, there are some options available to help you. You may be able to get a subsidy from the government, or you could look into other health insurance options.
Conclusion paragraph
COBRA health insurance is a valuable program that can help you maintain your health insurance coverage if you lose your job. To be eligible for COBRA, you must have been covered by a group health insurance plan at the time you left your job. If you’re interested in learning more about COBRA or need help applying for coverage, contact our team today. We would be happy to answer any of your questions and help you get started with this important program