The Consolidated Omnibus Budget Reconciliation Act, or COBRA, isn't a particular kind of insurance. Rather, it's an extension of the insurance that you may have had through your employer that allows you to maintain health insurance coverage after leaving your job through resignation or termination. For that reason, it's fairly easy to apply for COBRA insurance coverage as long as you qualify for it.
Step 1
Check if you qualify for COBRA by contacting your company's human resources department or calling the Department of Labor at 1-866-444-3272 and speaking to a benefits adviser. Though most companies are required to offer COBRA benefits to departing employees, if your company is too small to fall under federal jurisdiction or if your termination was due to gross misconduct, you might not be eligible for benefits under COBRA.
Step 2
Look for official COBRA election paperwork in the mail within 14 days of your departure date. If you don't get it within that time frame, call your human resources department or the Department of Labor to make sure your eligibility has been reported.
Step 3
Call the contact number on your COBRA paperwork within the specified time frame, and let the representative know that you want to elect coverage. Be prepared to answer questions about how you want your coverage to continue. Though you can't change plans, you can change who is covered and whether to keep all your coverage (such as dental and vision insurance).
Step 4
Send in your first premium payment within the specified time period; if your check isn't received by that due date, your COBRA eligibility ends.
Tips and Warnings
- COBRA insurance costs more than employer-provided insurance because COBRA charges more--up to 102 percent of the premium--to cover administration fees and because there is no employer contribution with COBRA. If you are joining COBRA well into your election period, note that you are responsible for paying premiums dating to the last day of your coverage. If you waited 6 months to elect COBRA, you'll have to pay the previous 6 months of premiums for your coverage to take effect.
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