Insurance: COBRA FAQ Text Size:

• What exactly is COBRA?

• How does COBRA help individuals with their group health coverage?

• Do people pay the same amount under COBRA for health coverage?

• Does every employer have to offer COBRA health coverage to its employees?

• Is every employee entitled to COBRA benefits?

• Is anyone other than the employee ever entitled to COBRA benefits?

• What are some qualified events that'll allow someone to be covered under COBRA?

• Is the health coverage under COBRA for former employees less than the health coverage for active employees?

• Can I be covered under COBRA for the rest of my life?

• What federal agencies administer the COBRA coverage law?

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Q:

What exactly is COBRA?

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• A:

  It's a law passed by the US Congress to help individuals with their group health coverage if it's going to be terminated.

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Q:

How does COBRA help individuals with their group health coverage?

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• A:

  COBRA allows former employees and certain others to continue the health coverage they received from work for a temporary period of time.

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Q:

Do people pay the same amount under COBRA for health coverage?

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• A:

  Individuals normally have to pay more for health coverage since their employers are no longer helping to pay part of the premium.

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Q:

Does every employer have to offer COBRA health coverage to its employees?

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• A:

  No, usually only employers with 20 or more employees.

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Q:

Is every employee entitled to COBRA benefits?

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• A:

  No, COBRA sets specific criteria that must be met for an employee to receive benefits. The criteria covers three elements: health plan coverage, qualified beneficiaries and qualified events.

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Q:

Is anyone other than the employee ever entitled to COBRA benefits?

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• A:

  In many cases, the employee's spouse and dependent child can be considered qualified beneficiaries and can receive benefits under COBRA.

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Q:

What are some qualified events that'll allow someone to be covered under COBRA?

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• A: There are certain events that terminate health coverage that are considered "qualified" for COBRA coverage. These include:

  • Employment termination for reasons other than gross misconduct
  • Drop in hours of employment
  • Loss of coverage from divorce or legal separation
  • Death of the employee
  • Loss of status as a dependent child under the rules of the health plan

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Q:

Is the health coverage under COBRA for former employees less than the health coverage for active employees?

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• A:

  The coverage must be identical. Any changes to the health plan apply to both former employees and active employees.

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Q:

Can I be covered under COBRA for the rest of my life?

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• A:

  No, the coverage is only temporary. For most people, the coverage can last up to 18 months. Some qualified beneficiaries are entitled to coverage up to 36 months.

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Q:

What federal agencies administer the COBRA coverage law?

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• A:

  For public-sector health plans, the US Department of Health and Human Services administers the COBRA continuation coverage law. For private-sector health plans, both the US Department of Labor and the US Department of Treasury have authority over COBRA coverage.