How COBRA Works

What is COBRA?

COBRA stands for Consolidated Omnibus Budget Reconciliation Act that was Created in 1985. This Federal Law gives Individuals who Experience Job Loss the Option to Continue their Current Health Coverage for a Limited Amount of Time.

How does COBRA Insurance Work?

1. Following a Situation that Impacts Your Employment, Your Insurance Carrier can provide you with Information on COBRA Coverage. By Law this Information is Normally Included within the Plan Documents provided by Your Insurance from when You Initially Enrolled.

2. Within 60 Days following the End of Your Employer's Plan Coverage, You can Decide if Continuing Your Health Coverage under COBRA is Right for You. Following the 60 Day Timespan, Your Health Coverage Will End if You Do NOT Enroll for COBRA.

3. If You Continue with COBRA, it will Start on the Day after Your Employer's Plan Coverage Ends. With COBRA, You will still have the Same Benefits as if You were still Under Your Employer's Group Plan. You can Continue to see the Same Providers and Follow all the Existing Plan Details.

4. Health Insurance Coverage under COBRA may last for 18 or 36 Months. The Total depends on the Event that made You Eligible for COBRA.

5. COBRA may be Terminated Early if You don't Pay Your Premiums or Other Fees for Coverage. If may also be Terminated if You get a New Job that Offers Health Insurance Coverage, before COBRA Coverage Runs Out.

* Check with your Human Resources Department for any COBRA Insurance changes due to the COVID-19 Pandemic.

Quick Facts

• Employers with 20 or More Full-Time Employees are Usually Mandated to Offer COBRA Coverage.
• Depending on the Scenario, Health Insurance Coverage from COBRA Extends for a Limited Period of 18 or 36 Months.
• The Cost of COBRA Coverage is Usually High because the Newly Unemployed Individual Pays the Entire Cost of the Insurance as compared to when Employers usually Pay a Significant Portion of Healthcare Premiums for Employees.