How Long Does Cobra Coverage Last

When Dale, 45, quit his task to take some other position, he knew there was a three-month waiting period before he was eligible to join his new employer's health programme. Around the same time, his friend Debra, 62, was laid off from her job and would soon lose coverage for herself and her spouse.

Luckily, Dale and Debra can both remain on their employer-sponsored health insurance under COBRA, also known equally the Consolidated Omnibus Reconciliation Human action. COBRA is a federal law passed three decades ago to requite families an insurance condom net between jobs. Information technology'due south available if you're already enrolled in an employer-sponsored medical, dental or vision plan, and your company has xx or more employees. Your spouse/partner and dependents tin can also be included on your COBRA coverage.

Here are v questions to ask before signing up for COBRA benefits:

i. What is my borderline to enroll in COBRA?

Your employer has 44 days from your final day of work or final day of insurance coverage (whichever is subsequently) to send out COBRA information. But information technology's a good idea to bank check in with your benefits manager a couple of weeks subsequently you go out.

You lot'll have 60 days to enroll in COBRA — or some other health plan — once your benefits finish. But keep in listen that delaying enrollment won't save you coin. COBRA is always retroactive to the day after your previous coverage ends, and yous'll need to pay your premiums for that period as well. One advantage of enrolling right away is that you can proceed seeing doctors and filling prescriptions without a intermission in coverage.

COBRA allows you to keep the exact same benefits as before. No changes can be fabricated to your plan at this fourth dimension. Still, if you're nevertheless on COBRA during the next open enrollment menses, you tin cull another plan from those your erstwhile company offers to employees. The new plan will have effect on Jan ane.

2. How much does COBRA cost?

Most companies pay the bulk of their employees' health plan premiums, and the rest is deducted from your paycheck. On average, workers contribute twenty% of the premium for private coverage and thirty% for family coverage. Under COBRA, you'll be responsible for 100% of your premium, so your monthly COBRA payment may exist 5 times higher than your payroll deduction.

Although that may seem similar a lot of money, COBRA premiums are usually less than yous'd pay on the open market place ― because you're withal benefiting from your company'south grouping discount.

If you have a health savings account (HSA), y'all tin pay your COBRA premiums from those funds. (Normally, insurance premiums aren't an HSA-eligible medical expense.)

During the next open enrollment period, y'all may choose to switch to a less expensive plan. Premiums for high-deductible health plans (HDHP), for instance, are considerably lower than other types of plans for both single and family unit coverage.

3. How long will my COBRA coverage last?

Although COBRA is temporary, you'll have fourth dimension to discover some other programme. Federal coverage lasts xviii months, starting when your previous benefits stop. Some states extend medical coverage (but may not include dental or vision) to 36 months. Check with your benefits manager to observe out whether your land extends COBRA benefits.

Some benefits take a lifetime limit, just that'due south not the case with COBRA. Each fourth dimension yous enroll, you're entitled to the same benefits for the same menses of fourth dimension.

4. What are the alternatives to COBRA when I leave my job?

COBRA isn't your just choice when you lose your employer-sponsored plan. Depending on your state of affairs, you may authorize for other health benefits:

Join your spouse/partner's employer-sponsored plan. Leaving your job triggers a special enrollment catamenia that allows you to join your spouse/partner's programme. Fifty-fifty if your spouse isn't enrolled in their employer'southward plan, your job loss allows y'all both to sign up outside the usual open enrollment flow within thirty days. Detect out how qualifying life events, similar spousal relationship or having a baby, affect your health coverage.
Choose a program through the health insurance marketplace at healthcare.gov. You lot don't demand to await until Open Enrollment in the fall if you have a qualifying life event, such every bit leaving a chore. You have 60 days to choose a plan, and your benefits will start the starting time twenty-four hours of the month after you lose your insurance.
Enroll in a trade/professional person group programme. Yous may exist able to find plans with lower premiums through national organizations that offer benefits for independent workers, such as the National Clan for the Self-Employed ($120/year membership fee; NASE.org) or the Freelancers Union (free membership; freelancersunion.org). No proof of self-employed status is required.
Depression- and moderate-income families may exist eligible for the Children's Health Insurance Programme (Chip). If you lot earn too much to qualify for Medicaid, you may be able to become your kids low-cost coverage through Fleck, which is jointly funded past states and the federal government. You can find more than information on healthcare.gov.

If you lot're 65 or older, learn about additional health insurance options.

5. What happens when my COBRA coverage runs out?

If you lot oasis't found a new job with benefits when your COBRA expires, you'll demand to choose from the alternatives listed above. Be sure to shop effectually ahead of time to avert any lapse in coverage.

By asking the correct questions about COBRA benefits, Dale and Debra can now choose the best health care options for them. Information technology'll give them one less matter to worry nigh then they tin can focus on the life changes ahead.

Most the author

Christina Joseph Robinson is a veteran editor and writer from New Jersey who yet loves to read the sometime-fashioned newspaper. She'south raising ii fruit-and-veggie loving daughters to residuum all the treats Grandma sends their way. Christina'southward health goal is to resume her workout routine after being sidelined by injuries.