The Consolidated Omnibus Budget Reconciliation Act, or COBRA, is a government program that was created with the goal of allowing employees to continue their health insurance coverage even after they leave their employers. To qualify for this health insurance coverage, you do not have to be fired, as you can get it even if you quit.
COBRA
COBRA is a program that you can qualify for when your work situation changes. With this program, you can take over the premium payments for your health insurance coverage. Once you do this, you get to continue using the group health insurance plan that you had when you worked full-time for your employer. This kind of coverage is designed to help you keep health insurance while you are looking for another job that has group health insurance or until you get an individual insurance plan.
Eligibility
If you want to use COBRA, you have to meet some eligibility guidelines. Your employer has to offer a group health insurance plan. The employer typically has to have more than 20 employees before COBRA is even an option. If your employer offered the insurance plan, you must have been enrolled in the plan before your work situation changed. If you meet the eligibility guidelines, you can obtain coverage for 18 months, or 29 months if you are disabled.
Qualifying Events
Before you can get on COBRA coverage, you have to go through a qualifying event. This means that you have to either significantly reduce your working hours or leave your job. This does not have to be an involuntary termination of employment and it can be as a result of you quitting your job. Your spouse and other beneficiaries can also elect to get on COBRA coverage if they go through the same qualifying event that makes you eligible.
Getting Coverage
When you quit your job, you do not simply automatically go on COBRA. You have to take action to be included in this program. Your employer will send the plan administrator a qualifying event notice within 30 days of the event taking place. You will then get a notice from your employer within 14 days. At that point, you have 60 days to elect to take COBRA coverage. If you do not elect to get coverage within that time, you lose your right to participate.
