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Employee Requirements for Cobra

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a law that gives would-be working people and their families the choice to continue receiving group health care benefits should their employment and, therefore, health benefits be terminated, according to the United States Department of Labor. There are three qualifications an individual and his employer must meet to be eligible for COBRA coverage.

  1. Qualifying Events

    • Qualifying events for employees, which determine whether they are eligible for COBRA, include the loss of a job, either voluntarily or involuntarily or a reduction of working hours. Spouses can become beneficiaries due to the loss of a covered spouse's job, when a covered spouse becomes entitled to Medicare or during divorce or legal separation from a covered spouse. Dependent children are eligible as beneficiaries when a covered parent loses her job, when a covered parent becomes entitled to Medicare or upon death of the covered parent.

    Qualified Beneficiaries

    • Qualified beneficiaries are all individuals covered under the company insurance plan the day before a qualifying event happens. There are certain times when this requirement is waived, however, such as during an adoption. There must be at least one qualified beneficiary to receive COBRA benefits.

    Coverage

    • COBRA covers all private-sector employers with 20 or more employees, as well as state and local governments. Employers must notify COBRA administrators of a qualifying event within 30 days of its occurrence, unless the qualifying event is divorce or legal separation, or the fact that a dependent child is no longer covered, in which case, a qualified beneficiary must notify the administration. Within 14 days, an electronic notice is sent to qualified beneficiaries, at which time they have 60 days to decide if they want COBRA coverage. COBRA coverage begins the day that normal health care coverage is terminated due to a qualifying event. COBRA coverage lasts for 18 months but may be extended in cases of disability.

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