Types of COBRA Coverage

Consolidated Omnibus Budget Reconciliation Act, COBRA, was created in 1986 with the intention of providing workers who are terminated or laid off an opportunity to continue health insurance coverage for a specified period of time. The type of health insurance workers receive under COBRA varies by the type of coverage employees had under their former health insurance plans.

Continuation Coverage

• Under COBRA, an employee who participates in his employer's group health plan may continue coverage for himself, his spouse and his dependents between 18 and 36 months if he is terminated, laid off or becomes disabled while at work. A spouse and any dependents may be eligible for continued coverage if the employed spouse dies or the marriage ends through divorce. The total amount of time an employee is able to continue health coverage depends on the manner of his separation from employment. An employee can only continue health coverage for up to 18 months if he is laid off or terminated. He may continue coverage for up to 29 months if he is medically determined disabled during the first 60 days of COBRA coverage. An employee's spouse and dependents may continue health coverage for up to 36 months if the spouses divorce or the spouse with group health coverage dies.

What COBRA Covers

• According to the U.S. Department of Labor, COBRA coverage is required to be identical to your former group health insurance plan with your former employer in terms of health coverage. Your specific type of coverage depends on the quality of your former health insurance plan. The better your former health coverage, the more COBRA health insurance costs. You are required to pay the entire premium amount to receive COBRA coverage. This can make this type of health insurance quite expensive. The U.S. Department of Labor states the monthly premium of your COBRA health insurance cannot exceed 102 percent of the cost of insuring similar individuals who are covered under COBRA.

Obtaining COBRA Coverage

• Once you are dismissed or otherwise removed from your position, your employer is required to notify his health plan administrator that you are no longer eligible for health insurance coverage. The health plan administrator then has 14 days to notify you in writing of your eligibility to elect COBRA coverage. You have 60 days to respond to this notice and elect to receive COBRA health benefits. If you wait beyond the 60-day decision period you are no longer eligible for COBRA.

Plans Not Covered

• Certain employer health insurance plans are not covered under COBRA health insurance regulations. If you are covered under the federal government's group health insurance plan you are not eligible to elect COBRA coverage when you are terminated or otherwise removed from your position. Certain health plans run through churches and religious centers are also not covered under COBRA health insurance regulations. If your employer participates in a small health insurance plan and employs less than 20 workers you are not eligible for continuation coverage under COBRA.