If you have
just lost or left your job, this law -- commonly called COBRA
-- will help you and your family keep your group health coverage
while you make the transition to a new plan.
COBRA requires most employers to offer employees
and their families the opportunity for a temporary extension
of health coverage under certain circumstances -- such as
job loss, job transition, job reduction, divorce, or death
of the covered employee -- after which their health plan coverage
would ordinarily end. These instances are called "qualifying
events," and the extension can last anywhere from 18
months to 36 months, depending on the situation.
- If the reason that you are losing coverage
is because you quit your job or because your employer
reduced your hours or terminated you (for reasons other
than "gross misconduct"), you can continue coverage
for yourself, your spouse and your dependent children
for a period of 18 months.
- If you were covered under your spouse's
health plan and if you are losing that coverage because
of divorce, separation or the death of your spouse, you
can continue coverage for you and your dependent children
for a period of 36 months.
- If you were covered under a parent's
health plan and are losing that coverage because you are
no longer a dependent of your parent, you can continue
coverage for yourself for a period of 36 months.
Unfortunately for your
pocketbook, COBRA is not free coverage, nor
is it a government benefit. You must pay for the continued
coverage yourself. Still, COBRA ensures that
you will pay for that coverage under the group rate that was
paid by your employer, which can be considerably less than
individual rates.
You, your employer and your health plan all have responsibilities
under the law. For example, the plan must inform you generally
about your rights under COBRA. Employers
must notify the plan of an employee's death, termination of
employment or reduction in hours. The employee or covered
family member must notify the plan of a divorce, legal separation
or disability. The employee or covered family member must
also notify the plan when a child loses dependent status.
If you want to continue coverage under COBRA,
you have 60 days from the date when your employer-paid coverage
would end to notify the plan that you want to continue coverage.
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