If former employees, spouses, dependents, or retirees lose health coverage, they may be eligible for a COBRA Continuation Health Coverage Plan. COBRA is eligible to an employee if they are no longer offered health coverage under their employer and the employer is still offering the same health coverage to the other employees. Typically, businesses with 20 or more employees utilize COBRA. However, eligibility is also determined based on certain qualifying events. You must fit into one of the below qualifying events in order to be considered a COBRA qualified beneficiary.
The qualifying events for employees:
- Voluntary or involuntary termination of employment (misconduct is not included)
- Decreased number of hours in employment (full time to part time and no longer eligible for coverage)
The qualifying events for spouses:
- Voluntary or involuntary termination of employment (misconduct is not included)
- Decreased number of hours in employment (full time to part time and no longer eligible for coverage)
- Divorce or legal separation
- Death of the employee receiving health coverage
- Previously covered employee receives Medicare
The qualifying events for dependent children:
- Dependent is no longer eligible to be considered a dependent under the plan rules
- Voluntary or involuntary termination of employment (misconduct is not included)
- Decreased number of hours in employment (full time to part time and no longer eligible for coverage)
- Divorce or legal separation
- Death of the employee receiving health coverage
- Previously covered employee receives Medicare
How to get COBRA
- The employer is responsible for notifying the plan administrator or insurance agent within a 30 day period after an employee’s termination, reduction in hours, enrollment in Medicare, or death,
- The individual or qualified beneficiary is then responsible for letting the plan administrator or insurance agent know about the qualifying event within 60 days.
- After the plan administrator or agent is notified of the qualifying event, they have 14 days to give the qualified beneficiary a plan election form.
- The qualified beneficiary has 60 days to elect a COBRA plan and 45 days after the election process to pay the premium fee.
Do you think you may qualify for a COBRA continuation plan? Do you have any questions about how COBRA works? Feel free to contact us here.