Who Is Eligible for COBRA Insurance?

COBRA, or the Consolidated Omnibus Budget Reconciliation Act, provides extended group medical benefits for qualified employees. If qualified, employees, spouses and dependents can continue health coverage in the event of job loss.

Basic Eligibility

• The basic requirement for COBRA eligibility includes enrollment in an employer's health plan. Current employees must still have access to the health plan, and they must have experienced a qualifying event that would otherwise terminate health care coverage.

Qualification Specifics

• Employers with more than 20 employees that offer a group health plan must follow the requirements laid out by COBRA. Individuals, spouses and dependents covered by the employee's health plan can opt to extend coverage for a variety of reasons, including the voluntary or involuntary termination of the covered employee. In addition, spouses and dependents can elect to continue coverage in situations related to divorce or death of the covered employee.

Coverage Eligibility

• Eligible employees and beneficiaries must receive notification of eligibility for COBRA benefits from their employers, or the plan administrator, within 30 days of a qualifying event. In the case of divorce or legal separation, the beneficiary must contact the plan administrator within 60 days of the event. Eligible participants have 60 days to elect coverage and 45 days after that to pay the initial premium charge.