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Can I Continue on COBRA If I Get a Job?

COBRA coverage can be a real lifesaver if you lose or quit your job. Although paying the full premium yourself can be expensive, not having insurance coverage can be much more expensive if a serious health problem arises.

  1. COBRA Coverage

    • COBRA stands for Consolidated Omnibus Budget Reconciliation Act, passed in 1986. COBRA allows many employees to temporarily retain their group health benefits if they leave their jobs voluntarily or are fired. In most cases the employee must pay the full premium amount, including the part the employer used to pick up.

    Keeping COBRA Coverage

    • It is possible to continue COBRA coverage for 18 months after leaving a job. In some cases, the government will subsidize the premium. If a person is offered a new job before their COBRA coverage expires it is possible to keep COBRA. Under the law, a person can continue under COBRA if the new plan has a waiting period for pre-existing conditions.

    Other Options for COBRA Coverage

    • If there are no waiting periods on the new plan being offered, you cannot both continue COBRA coverage and enroll in the new insurance plan. One option is to turn down the new policy and continue on COBRA coverage until it runs out. Once COBRA coverage runs out, you might have to wait until the next open-enrollment period to sign up for the plan offered at the new job.

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