How Long You Have to Work to Qualify for COBRA Benefits

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act of 1986. Among the law's provisions was a program to provide for the continuation of group health insurance coverage for workers affected by a job loss, reduction in benefits or reduction in hours. The law also benefits the families of those so affected by extending coverage to them as well, if they have lost group health coverage.

Worker Eligibility

• Workers are eligible for COBRA continuation coverage if they were covered by a group health plan sponsored by a company with at least 20 employees on 50 percent of its typical business days within the previous calendar year, on the day prior to a qualifying event. There is no specific requirement to have worked a specific number of days or months.

Qualifying Events

• Events that may trigger eligibility for COBRA continuation coverage include job loss, layoffs, a reduction in hours that results in the worker being ineligible for group coverage with that employer or separation for any reason besides gross misconduct. Dependents of workers who retire, reach age 65 or lose their jobs for any reason other than gross misconduct are also covered, as are those who lose group coverage as a result of divorce or legal separation, or the death of a covered worker.

Application Process

• To obtain COBRA coverage, you must apply for it within 60 days of receiving a continuation notice from your employer. Provide a formal notice to your benefits department or plan administrator that you would like to elect COBRA coverage.

Duration of Coverage

• COBRA coverage lasts for up to 18 months. However, you may be able to extend this coverage if you have become disabled during the first 60 days of COBRA continuation coverage. Otherwise your coverage will lapse after 18 months and you will have no coverage unless you make other arrangements.