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If I Quit My Job Can I Still Get COBRA?

If you have group health insurance through your employer, the Consolidated Omnibus Budget Reconciliation Act of 1986 gives you the right to continue health insurance coverage through the group plan after you leave. COBRA applies if you quit your job, are laid off, are terminated for any reason other than gross misconduct or have your number of work hours reduced.

  1. Duration and Cost

    • If you elect COBRA, you can continue on your employer's group plan for up to 18 months, as long as you pay the monthly premium. If your employer's group plan also covered your spouse and dependent children, they are also eligible for COBRA coverage. The premium for COBRA coverage is 100 percent of the group rate premium plus a 2 percent administrative fee.

    Who Offers COBRA?

    • Generally, any private-sector employer with 20 or more employees, employee organization or state or local government that has a group health care plan must offer COBRA coverage. To be eligible for COBRA, you must have been covered by the plan while you were working.

    Notification

    • When you leave your job, your employer must notify the health insurance plan administrator within 30 days. The plan administrator then has 14 days to give you a COBRA election notice either in person or by first class mail. The notice must give you at least 60 days to elect COBRA coverage. Coverage is effective on the date the group plan otherwise would have stopped covering you.

    Considerations

    • Other than you not paying the premiums, the employer can discontinue your COBRA coverage for several reasons: if the employer no longer has any group health plan; if you obtain insurance through another employer group health plan that does not exclude or limit coverage of any pre-existing condition, or if you become entitled to Medicare benefits.

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