The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that allows employees and their families to continue receiving health insurance coverage after experiencing a qualifying event, such as job loss or a reduction in work hours. COBRA requires employers with 20 or more employees to offer continuation coverage for a limited period of time, typically 18 to 36 months, and allows individuals to maintain their health insurance by paying the full premium cost. This law provides a safety net for individuals and families during times of transition and uncertainty.
Answer: COBRA is a federal law that allows eligible employees and their dependents to continue their health insurance coverage after a job loss or other qualifying event.
Answer: Employees who work for employers with 20 or more employees and have been enrolled in a group health plan are generally eligible for COBRA coverage. Dependents of eligible employees may also be eligible.
Answer: COBRA coverage typically lasts for a maximum of 18 months, but it can be extended to 36 months in certain circumstances, such as disability or the death of the covered employee.
Answer: Yes, employers can charge up to 102% of the cost of the health insurance premium for COBRA coverage. This includes both the employer and employee portions of the premium.
Answer: Employers can terminate COBRA coverage if the individual fails to pay the required premiums on time or becomes eligible for another group health plan.
Answer: Yes, individuals have the option to decline COBRA coverage if they find alternative health insurance coverage within a certain timeframe.
Answer: No, COBRA coverage cannot be retroactive. It begins on the date of the qualifying event and continues for the specified period.
Answer: No, individuals on COBRA coverage cannot switch to a different health insurance plan until the next open enrollment period.
Answer: Yes, an employer can deny COBRA coverage to an employee who was terminated for gross misconduct, as defined by the employer’s policies.
Answer: No, individuals who become eligible for Medicare are no longer eligible for COBRA coverage. They should enroll in Medicare instead.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 13th April 2024.
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