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Requirements to Obtain Cobra

A struggling economy has forced many workers in the United States to consider COBRA coverage. COBRA, which stands for Consolidated Omnibus Budget Reconciliation Act, allows you to maintain coverage under your employer's health insurance plan in the event that you lose your job or face certain other events. Coverage under COBRA doesn't come cheap -- you may be required to pay up to 102 percent of the heath plan's premium cost, according to the US Department of Labor. If you or your family members have health problems, however, obtaining COBRA may be vital.

  1. General Eligibility

    • You must have been covered under your employer's health plan prior to the day you lost your job or went through another eligible event. Your employer must have at least 20 employees working a minimum of 50 percent of the previous year's business days for the health plan to be eligible under COBRA, according to the Department of Labor. Additionally, the health plan must still be available to current employees. Your spouse and children may also keep their health coverage under your employer's plan provided they meet the requirements for a qualifying event.

    Qualifying Situations

    • Losing your job voluntarily or involuntarily makes you eligible for personal COBRA coverage, provided you did not lose your job due to unlawful activities. You can also obtain coverage if your work hours are reduced. Additional events that allow your spouse and children to obtain COBRA include legal separation, divorce, your eligibility to obtain Medicare or your death. If you have children while you are covered under COBRA, they are eligible for coverage as well, regardless of whether you gave birth to or adopted them.

    Notification Process

    • Your employer should notify your health plan administrator within 30 days that you have experienced a qualifying event for COBRA coverage. You should receive notice within 14 days that you are eligible for the coverage. You have 60 days to decide whether to enroll in COBRA once you receive this notification. You then have 45 days to pay your first insurance premium once you've informed the health plan administrator of your decision to enroll, according to the Department of Labor.

    Duration of Benefits

    • Your benefits under COBRA last for 18 months. In some cases, however, you may be able to extend coverage up to 36 months. For example, your covered spouse could obtain coverage up to 36 months if you divorce. Having a disability can also allow you to extend coverage for you and your family for 11 months after the 18-month mark. You must provide documentation from the Social Security Administration that you became disabled within 60 days of beginning COBRA coverage.

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