Federal COBRA
The Consolidated Omnibus Reconciliation Act, more commonly known as COBRA, guarantees that certain persons losing their employer-based health insurance have the option to remain insured under that group health plan. Federal COBRA applies only to employer sponsored group health plans offered by employers that had 20 or more employees in the preceding year. If the company from which you have recently lost employment had fewer than 20 employees, refer to the State Variations of COBRA Laws section of this guide.

There are risks to being without health insurance, both near-term in protecting against major medical expenses, but also longer-term in your ability to enter into a more permanent health insurance plan at a later date. This guide provides a very high level overview of all of the medical insurance options that you may consider and what the potential long-term benefits and risks that each of those options might bring.

An eligible person, as well as their qualified dependents can remain insured under the group plan of a period of 18 months, with extensions available under certain circumstances. Upon termination of employment, an employer is required by law to provide COBRA eligibility guidelines to you within 14 days of your last day of coverage under the group's health plan. This "Election Notice" will provide you with all of the details pertaining to your option to remain insured under your current group health plan, without any lapse in coverage.

For answers to many of your COBRA questions, view the COBRA FAQ's section of this guide. The strongest case for continuing under COBRA is that it provides continuity during a period in which many of your other affairs are in transition. However, there are other considerations when considering a COBRA plan. The biggest issue for COBRA eligibility applicants is the cost of coverage for which they are now responsible. Most employees are not aware of the amount of the employer's monthly contribution to monthly health insurance premiums.

This is especially true when your employer has paid for 100% of your insurance premium. Once the employer's contribution is removed, the costs to continue health insurance benefits through COBRA may be out of reach for a former employee to bear on his or her own. The American Recovery and Reinvestment Act of 2009 may offer some relief for qualified persons if unemployment occurred between September 1st, 2008 and December 31st, 2009.

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Table of Contents

• Section 1: Guide to Health Insurance for the Unemployed
• Section 2: COBRA Options
• Federal COBRA
• Federal COBRA Premium Subsidy Program
• State Variations of COBRA Laws
• COBRA FAQ's
• Section 3: Individual/Family Health Insurance
• The Underwriting Process
• Guaranteed Issue Individual Health Insurance
• Key Benefits to Individual Health Insurance
• Section 4: Short-Term / Temporary Health Insurance
• Section 5: Limited Benefit Medical Plans
• Section 6: Which Option is Right for You?
• Plan Options Comparison Chart
  
• Useful Tips