What is COBRA Continuation Coverage Insurance when being let go or leaving a job?

Qualifying Events:

• • Qualifying events that trigger the right to COBRA coverage include voluntary or involuntary job loss, reduction in working hours, transition between jobs, divorce or legal separation from the covered employee, and the death of the covered employee.

Coverage Duration:

• • For most qualifying events, COBRA allows individuals to continue their group health insurance coverage for a limited period, typically up to 18 months. In certain circumstances, such as disability or a second qualifying event, coverage may be extended to 29 months.

Cost:

• • While COBRA provides the right to continue coverage, the individual is responsible for paying the total cost of the insurance premium. This includes the employer's share plus an additional 2% administrative fee. The premium can be relatively expensive, as it covers the entire cost of the plan.

Notification:

• • When a qualifying event occurs, employers must notify employees and their dependents of their right to COBRA continuation coverage. Individuals then have a limited time to elect COBRA coverage.

Enrollment Period:

• • Generally, individuals have 60 days from the date of the COBRA election notice to decide whether to elect COBRA coverage. If they choose to continue coverage, they must pay the first premium within 45 days of electing COBRA.

Limitations:

• • It's important to note that COBRA is not available for everyone. Small employers with at most 20 employees may not be subject to COBRA requirements. Additionally, if an individual is eligible for other group health coverage, such as through a new employer, they may not qualify for COBRA.