How does COBRA insurance work?

COBRA applies to most private sector businesses with 20 or more employees. It requires an employer's group health insurance plan to continue after qualifying life events. These include:

• Termination or a reduction of a covered employee's hours
• Divorce or legal separation from a covered employee
• Death of a covered employee
• Medicare eligibility for a covered employee
• Loss of a child's or dependent's health insurance coverage under the plan

Qualified beneficiaries under COBRA include:

• An employee
• Spouse
• Former spouses
• Dependent children

The amount of time COBRA benefits last depends on the qualifying life event you experience. In some cases, it may be for 36 months. If your hours were reduced or your job was terminated, you can receive COBRA benefits for 18 months.

Find out if you are eligible for COBRA

COBRA eligibility has three basic requirements that must be met for you to get a continuation of coverage:

• Your group health plan must be covered by COBRA.
• A qualifying event must occur.
• You must be a qualified beneficiary for that event.

How to get COBRA coverage

When a qualifying life event happens, you or your employer will notify the health plan. The plan will send an election notice that you will have 60 days to respond to. If you elect to take COBRA coverage, your employer may pay a portion of or the full amount of your insurance premium.

Contact your employer’s health insurance plan administrator with questions about COBRA, including:

• If you currently have COBRA coverage
• When your COBRA coverage will begin
• How long the coverage may last

To get more information about COBRA benefits, read this publication from the U.S. Department of Labor (DOL).