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How Long Does COBRA Last?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows for, according to the United States Department of Labor, "continuation health coverage." The government-funded group insurance works by giving workers who have been fired or laid off from their jobs the chance to continue their health insurance until they find another job. COBRA typically lasts up to 18 months, but there are some exceptions.

  1. Disability Filing

    • Workers awaiting a ruling on disability, handled through the Social Security Administration (SSA), can apply for an extension beyond the 18-month period. To do so, they must provide proof of a ruling from the SSA within 60 days of receiving COBRA benefits. This can add up to an additional 11 months on the COBRA coverage.

    A Second "Qualifying Event"

    • A worker reduced to part-time employment from full-time status is eligible for COBRA. If that worker then loses his job, this is called a "second qualifying event." He is then eligible for up to 36 months of COBRA coverage. Termination, death, loss of hours, and eligibility for Medicare are considered qualifying events by the U.S. Department of Labor.

    American Recovery and Reinvestment Act Changes

    • Those who qualified for and refused COBRA between September 1, 2008 and February 16, 2009 are eligible for a second chance at receiving COBRA. They must call 1-866-44-3272 for more information. This second-chance option is a part of the extensive Recovery and Reinvestment Act that held provisions for everything from housing to unemployment benefits.

    Costs

    • The extended coverage time can cost the covered worker the regular COBRA payment plus 150 percent of that price in additional costs. COBRA payments are usually the amount of the premium that worker paid while on the job plus the amount paid by the employer as well as a potential 2 percent administrative fee.

    Time Is of the Essence

    • Within 30 days of the "qualifying event," your employer will contact you with information on receiving COBRA. You must respond within the date listed. Second qualifying events must be reported within 60 days. The COBRA payments are due within 45 days of accepting coverage.

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