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Lengths of Employment for COBRA Eligibility

The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows employees to temporarily continue their health care coverage when leaving a job. This is especially important for people who would not be able to get an individual health care plan due to a pre-existing condition. The downside to COBRA plans is that they are more expensive than typical group coverage plans through an employer since the employer typically supplements the cost of insurance while employed. There is no time limit for employment to qualify for COBRA, but you must have been enrolled in your company health care program.

  1. Health Plan Coverage

    • To qualify for COBRA health care coverage, your recent employer must offer a health care program and have 20 or more full-time employees on at least half of the operational days. Part-time employees can also count toward this total, but they are prorated based on the number of hours they work. Agents and independent contractors who are covered by the employer's health care plan may also qualify for COBRA.

    Beneficiaries

    • For beneficiaries of the former employee to qualify for COBRA health coverage, they must have been covered by the employer's group health care plan. Qualifying beneficiaries include the former employee's spouse and dependent children.

    Termination of Employment

    • To be eligible for COBRA, the employee must meet certain qualifications regarding the loss of employment. The former employee must have been terminated from the job for reasons other than gross misconduct. Voluntarily leaving a position also qualifies you for COBRA. Being terminated from a job for theft, disobedience, or other disciplinary reasons will disqualify you from the COBRA program.

    Other Eligibility Options

    • In addition, dependent children who lose their dependent child status, dependents of a deceased employee, or drastic reduction in hours worked can also be qualifiers for COBRA eligibility. If the employee stays at the job but becomes qualified for Medicaid, dependents can also qualify for COBRA.

    Election Period

    • You have a window of opportunity, called the election period, to enroll in the COBRA program. This must be at least 60 days, but check with your previous employer to see exactly how long you have to decide on your participation.

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