What is COBRA? FAQ

COBRA – Frequently Asked Questions

What is COBRA?

  • COBRA is an acronym for Consolidated Omnibus Budget Reconciliation Act of 1985.

Why should I care about COBRA?

  • COBRA is the law that congress passed that allows you to keep your health insurance even after you separate from your employer.

What plans are subject to COBRA?

  • Nearly all group heal plans. Its best to check with your employers HR department regarding this.

How does COBRA work?

  • When you separate from your employer by law you have the right to choose to continue your work health benefits.

What if I only lost health coverage due to a reduction in hours worked?

  • If you have lost your health benefits due to a reduction in hours you may be able to utilize COBRA. Please consult your employers HR department.

How long will I be able to keep my COBRA coverage?

  • Typically allow coverage for up to 18 months in most cases.
  • Up to 36 months for spouses due to a spousal death, divorce or legal separation.

When do I have to sign up for COBRA?

  • You have 60 days from the day of separation from your employer.

Is COBRA expensive?

  • Your employer most likely is not subsidizing the coverage like when you were an employee. For this reason the cost to you as an individual is typically much higher.

Can I get COBRA even if I quit?

  • Yes, whether you quit or are involuntarily separated from your employer you are eligible for COBRA.
  • Only exception is that the separation is due to gross misconduct.

Do I have to use COBRA?

  • No, due to the costs associated with non subsidized health insurance it may be financially beneficial to look at other independent health care providers or through the healthcare.gov portal.

Do you have any helpful information for Michigan Unemployment?

Yes see our Michigan MARVIN FAQ guide.