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COBRA Health Insurance in Illinois

The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives eligible employees, spouses and dependents the right to continue coverage after their employment ends. Employers must notify you of rights to continue coverage and you must elect coverage within a certain time period. If you do not elect coverage within the specified period, you may lose the right to receive continuation coverage.

  1. Qualifying Events

    • COBRA defines qualifying beneficiaries as an employee, spouse or dependent child who is covered under the group health plan before the qualifying event. Individuals terminated from employment other than for gross misconduct, or those who received a reduction in hours may qualify for COBRA. You may also qualify if you were on a Family and Medical Leave Act leave of absence and notified your employer that you will not return to work. Spouses may receive COBRA coverage in the event of the death of the employee or divorce or legal separation from the employee. Dependents may qualify for coverage in the event of the death of the employee or if the dependent has reached the maximum age to receive coverage under the employee's group plan, which is age 26.

    Cost and Benefits

    • COBRA premiums are higher than premiums offered under employer-sponsored group plans. Under COBRA, you are responsible for paying the entire premium, including the portion that was once paid by your former employer. You may have to pay a premium of up to 150 percent for months 19 to 29 if the coverage is extended due to a disability. You may also have to pay a 2 percent administration fee. COBRA benefits are the same as the benefits received under your group plan. However, it is possible that you may not receive the same coverage that was offered by your HMO.

    Length of Benefits

    • Depending on your circumstances, you may receive COBRA coverage for 18, 29, or 36 months. Terminated employees or those who have experienced a reduction in hours qualify for 18 months of coverage. If you experience a disability at the time of COBRA coverage or within 60 days of coverage, you may qualify for 29 months. Spouses that have experienced the death of an employee, divorce, or legal separation may receive coverage for 36 months. Dependents that have experienced loss of dependent status may receive COBRA coverage for 36 months.

    End of Benefits

    • Termination of benefits can occur at the end of your maximum coverage or if you fail to pay your monthly premium. Termination may also occur if you qualify for Medicare after receiving COBRA coverage, if the employer fails to continue group coverage or if you obtain group coverage through another employer. If you already receive Medicare coverage, you may elect to receive COBRA coverage as additional coverage. If eligible, you may convert to individual coverage at the end of your benefits. If you have a dependent with a disability, he may qualify for the HIPAA CHIP offered by the Illinois CHIP program. The plan offers coverage to uninsurable dependents.

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