COBRA

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a health insurance program that allows an eligible employee and his or her dependents the continued benefits of health coverage (usually 18-36 months) after losing coverage due to job termination, reduction in hours, or other qualifying events.

Coverage Continuity

COBRA lets you continue your workplace health insurance at the same coverage and plan(s) for a certain amount of time, usually 18 months or up to 36 months for certain life events.


Cost

You will be required to pay 102% of the full premium (Employer and Employee share).  For COBRA extensions, such as CalCOBRA, costs will be 110% of the full premium.


Notification

An election notice will be sent to you within 30-45 of the qualifying event.


Election Due Date 

You have 60 days to elect COBRA coverage, which is retroactive to your loss of coverage date.


Qualifying Events 

Qualifying events are certain events that would cause an individual to lose health coverage. The type of qualifying event will determine who the qualified beneficiaries are and the amount of time that a plan must offer the health coverage to them under COBRA. A plan, at its discretion, may provide longer periods of continuation coverage.

  • Qualifying Events for Employees

    • Voluntary or involuntary termination (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 hours works by the covered employee
    • Covered employees 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 becomes entitled to Medicare
    • Divorce or legal separation of the covered employee
    • Death of the covered employee