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COBRA Options

The Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit program was enacted in 1986. COBRA is designed to provide certain categories of former employees with a temporary continuation of health insurance at group rates. An individual must meet the job loss and former employer requirements in order to be eligible to receive COBRA coverage. Once an individual qualifies for COBRA health insurance, certain options are available.

  1. 18-Month COBRA Coverage

    • The eHealth Insurance website explains that the various options for COBRA health insurance are classified by the length of coverage. Each COBRA health insurance option is available to certain employees that meet the qualifying requirements. The 18-month COBRA health insurance option applies to an employee, the spouse and the dependents. The individual must have worked for a company that contained at least 20 workers the previous year. An individual qualifies for the 18-month insurance if he lost his job due to a voluntary or involuntary termination or work hour reduction. The 18-month COBRA health insurance option requires the individual to pay up to 102 percent of the insurance premium for the 18-month period.

    29-Month COBRA Coverage

    • The 29-month COBRA health insurance option also covers an employee, the spouse and the dependents. An individual qualifies for the 29-month plan if the former employer had an employee insurance plan in place. An individual also qualifies for the 29-month plan if the job was terminated, work hours were reduced or the individual has a disability that is certified by the Social Security Administration. The 29-month COBRA health insurance option requires the individual to pay up to 102 percent of the insurance premium for the first 18 months and up to 150 percent of the premium for the remaining 11 months.

    36-Month COBRA Coverage

    • The 36-month COBRA health insurance can be obtained by a spouse and dependents of an employee based on certain conditions. The employee cannot have formerly worked for the federal government. In order for the 36-month COBRA insurance to be obtained, the situation must involve a divorce or legal separation, the death of the employee, a child losing his dependent status or the employee qualifying for Medicare. The 36-month option requires the individual to pay up to 102 percent of the insurance premium for the entire coverage period.

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