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.