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What is COBRA? What is COBRA? COBRA is the acronym for the Consolidated Omnibus Budget Reconciliation Act, a 1986 federal law that allows for the temporary extension of group health coverage to people whose health benefits otherwise would be terminated. What does COBRA do? It allows certain employees, retirees, spouses, former spouses and dependent children to continue health insurance coverage at group rates for specifics time periods. To be eligible, a person must have been enrolled in their employer's health plan when he or she was working for that particular company. When does that coverage take effect? COBRA becomes available when an individual covered by a group health plan loses health insurance coverage because of a "qualifying event;" e.g., when an active employee's hours are reduced or job is terminated for reasons other than a person's gross misconduct. Spouses and dependent children may become COBRA-eligible when a covered employee's job is terminated or hours are reduced; when the employee becomes eligible for Medicare; upon the employee's death; or in the event of divorce or legal separation from a covered employee. How long does COBRA coverage last? COBRA begins on the date when a qualifying event triggers the loss of the health coverage. The law allows up to 18 months of continued coverage for certain qualifying events and up to 36 months for other qualifying events or a second qualifying event during the initial period of coverage. Employers may choose to provide coverage for longer periods if they wish. How much will I pay? You'll pay the entire premium amount, including the portion of the premium that your employer used to contribute toward your health benefits. You may also be required to pay a 2 percent administrative fee. For more information visit the United States Department of Labor website at: http://www.dol.gov/dol/topic/health-plans/cobra.htm For questions regarding your COBRA coverage, contact the AGBenefits Service Center at 877-213-6240. |
COBRA