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Cobra Insurance Guidelines

COBRA, the Consolidated Omnibus Budget Reduction Act, allows workers to continue their health insurance coverage even after their employment ends. COBRA imposes strict guidelines on both providers and applicants, according to the My Health Insurance Advisor website.

  1. Provider Requirements

    • Under COBRA, health insurance providers must offer workers who have left a job the same coverage they enjoyed under their employment benefits. The worker, however, now pays the entire premium amount, plus any increase, with no aid from the former employer.

    Eligibility

    • To qualify for COBRA eligibility, hopeful applicants must have worked at a company of at least 21 employees that offered group health coverage at the time the employment ended. Other cases of eligibility include divorce, loss of a dependent, a reduced work schedule or the termination of group health coverage to current employees.

    Duration

    • Applicants should receive information about COBRA before they leave their place of employment and receive their COBRA coverage 30 to 60 days after their last official work day. COBRA coverage generally runs 18 to 36 months, after which workers may exercise the Health Insurance Portability and Accountability Act, or HIPAA, to guarantee new coverage from an insurance provider.

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