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Cobra Insurance Continuation Rights in Wisconsin

COBRA is short for Consolidated Omnibus Reconciliation Act, and was voted into federal law in 1986. Wisconsin has a similar law passed on the state level that requires participation by all employers who offer group health coverage incentives, regardless of the number of employees. The state law expands on what is required under federal law, but does not reduce any of the benefits offered under the original COBRA plan.

  1. What is COBRA?

    • COBRA is a method to continue your employer-sponsored group health insurance when employment with the company comes to an end. The idea is that you can elect to continue your existing health coverage for up to 18 months, but you are responsible for paying the full premium costs. COBRA continuation applies to the insured person and their dependents. Wisconsin does not make any changes to COBRA, but it does make the benefits of COBRA available to all employees, even if the company does not employ the minimum number of employees required under federal law.

    COBRA Qualifications

    • To qualify for COBRA in Wisconsin, you must already be covered under a group health insurance plan. Within 30 days of your employment ending, you will receive a notice of how to sign up for COBRA. You will have 60 days to make the decision to use COBRA continuation, and can elect to use it for up to 18 months. COBRA continuation applies to yourself and spouse, and any immediate family members previously covered. Dependent children can remain on your health insurance until the end of the year that they turn 25.

    Costs of COBRA

    • Under COBRA, you are responsible for paying the full premium amount, including any portion previously paid your employer or other organization. There is also a processing cost of 2 percent that must be paid on top of the premium. COBRA continuation is an expensive way to have health coverage, but it is an available option during the transition from one employer to another.

    Benefits of COBRA

    • COBRA is not intended to replace traditional health insurance coverage. The purpose is to give a previously insured individual and their dependents an opportunity to find replacement health insurance without being suddenly left without any coverage. Some people, such as a pregnant woman, may have difficulty establishing health coverage immediately following their loss of employment, and COBRA prevents those people with preexisting conditions and health care from being left unprotected at a medically critical time.

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