What is Cobra?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits for limited periods of time under certain circumstances. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan.
COBRA outlines how employees and family members may elect continuation coverage. It also requires employers and plans to provide notices.
Who is eligible for COBRA?
A qualified beneficiary is an individual covered by a group health plan on the day before a qualifying event who is either an employee, the employee's spouse, or an employee's dependent child.
Under what circumstances are you a qualified beneficiary?
Qualifying Events for Employees:
- Voluntary or involuntary termination of employment for reasons other than gross misconduct
- Reduction in the number of hours of employment
Qualifying Events for Spouses:
- Voluntary or involuntary termination of the covered employee's employment for any reason other than gross misconduct
- Reduction in the hours worked by the covered employee
- Covered employee's becoming entitled to Medicare
- Divorce or legal separation of the covered employee
- Death of the covered employee
Qualifying Events for Dependent Children:
- Loss of dependent child status under the plan rules
- Voluntary or involuntary termination of the covered employee's employment for any reason other than gross misconduct
- Reduction in the hours worked by the covered employee
- Covered employee's becoming entitled to Medicare
- Divorce or legal separation of the covered employee
- Death of the covered employee
What if my previous employer has fewer than 20 employees?
The State of Colorado has a similar law that requires an employer to offer State Continuation of Coverage.
Why is COBRA so expensive?
Because healthcare is expensive. The COBRA premium is your full premium (the portion the employer has
been paying and the portion you have been paying).
How do I know if COBRA is my best option?
Call our office at 303-756-2663. We will be happy to help you evaluate your
situation and determine your best course of action. We never use
high pressure sales tactics. The call costs you nothing, even if
we recommend that you continue under COBRA, which we often do. |