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In this section:

Federal COBRA

Federal COBRA Premium Subsidy Program

State Variations of COBRA Laws

COBRA FAQ’s

We have put together a list of commonly asked questions that might be useful in helping you answer some of the questions are you likely to have. The selected questions and answer below are those most commonly asked by the recently unemployed. Most of these answers apply to both federal COBRA and State “mini-COBRA” laws. However, keep in mind that laws can vary by state when they apply to small employers and we highly recommend that you contact your State Department of Insurance for verification of certain facts.

Is everyone that has lost a job eligible for COBRA?
Under federal COBRA, which applies to groups of 20 or more employees, you must be a “qualified beneficiary” in order to exercise your right to continue coverage under your employer’s group plan. A qualified beneficiary is the employee and any of the employee’s dependents that were insured under the group plan on the date of termination from employment. In addition, COBRA is only available to an individual that has been terminated for reasons other than those that involve gross misconduct.

Who will notify me of my COBRA option, and when?
In general, your employer must notify the health plan administrator within 30 days from the date of the termination of employment. Notice must be sent to you within 14 days of the plan administrator being notified. Since not all employers are as familiar with COBRA laws as they should be, we highly recommend that you contact your previous employer or insurance carrier within the first 10 days following termination notice to ask for your COBRA election papers. This will also insure that your notice is sent to the proper address, which you should also verify during this phone call. This may vary under some state mini-COBRA laws.

How long do I have to decide if I want COBRA?
You have 60 days from the date that your coverage under the group plan is terminated or from the date that the COBRA election notice has been provided. This is referred to as the “election period.” Under ARRA, any individual that lost group health insurance between September 1, 2008 and February 16th, 2009, and did not enroll in COBRA, have a secondary election period of 60 days from February 16th, 2009. This may vary under some state mini-COBRA laws.

How much will I pay for my COBRA premium?
This will depend on how much your employer was paying for your insurance. Under federal COBRA, your maximum premium will be 102% of the amount that was charged to your employer by the insurance company. Under the American Recovery and Reinvestment Act of 2009, you may be entitled to a 65% reduction of this premium.

Do I need to enroll all of my dependents on COBRA if they were insured under the group plan?
No. Any, or all, qualified COBRA beneficiaries may enroll in COBRA. You can select which family members to enroll in COBRA after reviewing other available options.

What if my previous employer has gone out of business?
If there is no continuing group health insurance plan through your previous employer, there is no COBRA option available to you. In order to maintain a group health plan, a company must have employees currently on payroll. If a company goes out of business, they are no longer qualified to maintain group health insurance, which in turn affects the COBRA rights of all individuals previously insured under that plan.

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