The Consolidated Omnibus Budget Reconciliation Act, or COBRA, was passed by the U.S. government in 1986, and gives people access to health insurance after leaving a job, according to the U.S. Department of Labor. Former employees and their families can continue to receive the same coverage they had while the subscriber was employed. This coverage can be maintained for 18 to 36 months, depending on the event that triggered COBRA eligibility. If you are waiting for insurance offered by a new employer to begin, you may apply for COBRA coverage to maintain your health insurance.
Step 1
Notify your health plan administrator in writing that you plan to continue health coverage under COBRA. You must submit this notification within 60 days of receiving a notice of COBRA eligibility. The health plan administrator will typically provide the forms required for notification of intent to continue coverage.
Step 2
Complete the application for COBRA continuation coverage. Your health plan administrator will provide the application form.
Step 3
Pay premiums necessary to continue coverage under COBRA. These premiums are typically paid to the health plan administrator. COBRA premiums are at group rates, generally without assistance from your former employer, so they will likely be much higher than those you paid while employed by your former company.
Step 4
Continue paying premiums until coverage through the group health insurance policy offered by your new employer begins.
Tips and Warnings
- Explore other insurance options before applying for COBRA coverage. If your spouse is employed, her company may offer a group health insurance policy at rates much lower than you would pay for COBRA continuation coverage.
- Do not miss the initial 60-day deadline. Missing this deadline will cause you to become ineligible for COBRA continuation coverage.
Things You'll Need
- Notification of right to COBRA coverage
- COBRA application form
- Premium payments
Member Comments