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Continuation Coverage Rights Under COBRA

Losing your job can be a devastating experience financially, but it can also lead to further issues with health insurance coverage. While this situation can be difficult, the federal government has set up a program called COBRA, or the Consolidated Omnibus Reconciliation Act, that allows you to continue your existing medical coverage through your employer.

  1. Continuation Coverage

    • When you leave your job by being let go or voluntarily, you may want to continue your existing health coverage. This helps you stay in the same network and could allow you to continue receiving treatment from the same medical facilities. If you have a serious medical condition, you may not want to change insurance providers yet in case there are any issues with pre-existing conditions. With COBRA, you can elect to continue receiving the same insurance plan that you are used to from your employer.

    Paying Premiums

    • If you elect to continue your coverage with COBRA, you will have to start paying the full premium for the insurance. When you work for someone else, there is a good chance that the business will pay part of your insurance premium for you. After you leave the employer, it will no longer pay any portion of your premium for you. This can significantly raise the amount of money that you have to pay each month. You will also need to pay your former employer directly so that the company can pay the bill for the group.

    Duration of Coverage

    • For most people, the maximum amount of time that they can get coverage through COBRA is 18 months. This starts from the time that you leave your former employer. In some cases, you may be able to extend that 18 months by another 11 months. This makes the longest time period that someone could be on COBRA 29 months. This extension will only occur if the individual suffers from a disability and is having a hard time finding other employment. You could choose to get coverage through COBRA for as little as one month if you make other arrangements.

    Other Considerations

    • Not every employee will be eligible for COBRA after leaving a job. You typically have to work for employer that has at least 20 employees before this is an option. If you qualify for COBRA coverage, you can also include your family members in the new coverage. You also do not have to completely lose your job to qualify for COBRA coverage. If you have your hours significantly reduce from full time to part time, you could elect to go on COBRA while you are working.

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