How to Extend COBRA

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. COBRA is the law that allows people who are leaving a job to keep their health insurance from their employer and continue to pay group premiums for 18 months. People who leave a job due to a disability, however, quickly find that 18 months of coverage is not long enough. Even if they are approved for social security disability, they usually have to wait 24 months after the date of disability to be eligible for Medicare coverage. Fortunately, changes to COBRA have now made it possible to extend insurance coverage in certain cases.

Things You'll Need

• Social Security Notice of Award Letter

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Instructions

• 1

  Notify your employer that you want COBRA coverage as soon as you leave your job. If you have been part of your employer's group health plan, you should be able to continue your insurance for the company's group rates, plus a two percent administrative cost.

• 2

  Apply for Social Security Disability Insurance. You may have to go through one or two appeal processes to get approved. Social security must approve your claim by the time your COBRA health insurance continuation expires in 18 months. Furthermore, social security must determine that your disability started within 60 days of the start of your COBRA coverage.

• 3

  Provide a copy of your Social Security Notice of Award Letter to your COBRA administrator. This must be done within your 18 months of initial coverage and within 60 days of receiving the award letter. It's a good idea to send this documentation by USPS, "return receipt requested" so that you have proof the administrator has received it. Once the administrator has this documentation, you will be eligible to continue your COBRA coverage for 11 months. The price, however, will go up to 150 percent of your employer's group rate.