COBRA

Answer from Frances Dreher, Human Resources Expert

 

You could look into COBRA, an act passed by Congress. Under COBRA, you’re allowed to continue your health benefits even if you lose your job or are laid off. Your former employer is required to notify you of your rights under COBRA. You should receive a letter in the mail telling you exactly what you need to do to elect COBRA coverage.

 

But you only have 60 days to take action, so it’s really important that you get your application in on time. Once you start coverage, you can keep it for up to 18 months. Make sure to submit your payments on time or you might lose your coverage. 

 

**Editor’s Note** Under the new stimulus bill passed by Congress in February of 2009, the government will now pay 65% of your COBRA premiums. In the past, laid off workers were responsible for 100% of their premiums, which made it very expensive to continue benefits.
 

 

Learn How to Get COBRA After a Job Loss

If you lose your job, you can keep your health benefits if: If you were laid off or fired for almost any reason except gross misconduct. If you've had your hours reduced. If your employer bumps you from full to part time, you can keep your health benefits using COBRA.  If you qualify, your employer is required by law to send you a notification by mail. This notice should have a list of instructions for you to apply for COBRA coverage. Apply within 60 days of notification or you give up your rights to coverage. Follow the instructions included in the notification to ensure your paperwork is properly completed. Make sure to enroll any qualified dependants, such as your children or spouse. You must make your payments on time, or you can lose coverage. Even though the government now pays for 65% of COBRA premiums, you still have to pay the other 35%. You can keep your coverage for up to 18 months, even if you find a new job. You will lose your coverage if your former employer stops offering a group health plan or if your former employer goes out of business.  To learn other ways of getting health care coverage, please visit the Beehive’s “Paying for Health Care” section.