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Questions About COBRA Insurance

In order to provide employees the opportunity to continue their group health coverage in the event of their termination or other possible life-changing events, Congress passed the Consolidated Omnibus Budget Reconciliation Act (COBRA) in 1986. This act amended three other previous congressional acts and has made it possible for people to leave their jobs with some assurance of ongoing health coverage. However, questions about COBRA often arise because many people are unfamiliar with its basic provisions.

  1. Qualifying for COBRA

    • COBRA coverage is not automatic every time someone loses a job. In the event that you lose your job, one question you may need to ask is whether you qualify for coverage. In order to qualify for COBRA, you need to have lost your job for a reason other than "gross misconduct," according to the U.S. Department of Labor. Your separation from your employer can be voluntary or involuntary. If your employer reduces your hours below full-time status, you also have the right to elect for a continuation of benefits through COBRA.

    Your Family and COBRA

    • You may also wonder how your family can be affected by COBRA if they were covered under your employer's group health plan. The same basic qualifications apply to your family. In addition to the stated reasons for leaving your job, your spouse and children also qualify for COBRA coverage in the event that you qualify for Medicare or in the event that you and your spouse are legally separated or divorced. The same is true in the event of your death.

    Getting COBRA Coverage

    • The other frequent question that arises regarding COBRA coverage pertains to how to secure it. The law states that your employer must notify plan administrators within 30 days if you have a qualifying event occur in your life. The plan administrator must then send an election form to you within 14 days of receiving the notice. You then have 60 days from the day you left your job to elect for coverage under COBRA.

    Length of Benefits

    • Another question about COBRA coverage is the length of coverage. COBRA extends your previous benefits under your employer's plan for an additional 18 months from the time you leave your job. This can be extended to 36 months for your spouse and family, in the event of your death. Also, if you become disabled at any point during the first 60 days of COBRA coverage, you can extend benefits another 11 months beyond the initial 18 to receive 29 months of coverage.

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