COBRA lets employees and their dependents keep group health coverage after a qualifying event such as job loss or reduced hours. It applies to employers with 20 or more employees, usually for 18 to 36 months, with the individual paying the full premium plus a 2 percent administrative fee.
Divorce usually ends a former spouse’s eligibility under the other’s employer plan. The losing spouse can elect COBRA (or state continuation) for up to 36 months, or use the special enrollment period it triggers to enroll in a marketplace or new employer plan.
Sometimes. Health FSAs are only COBRA-eligible if the account is underspent at the time of the qualifying event, while dependent care FSAs are not subject to COBRA.
Instead of COBRA, you may be able to enroll in Marketplace coverage, a spouse’s or parent’s employer plan, or Medicaid, which can be more affordable depending on your income and eligibility.
Yes. Each qualified beneficiary can elect COBRA independently, allowing coverage to continue for one family member while others decline.
COBRA coverage is identical to the employer’s group health plan (same benefits, providers, and rules) because it is a continuation of coverage, not a separate plan.
Yes. COBRA coverage can end before the maximum coverage period if certain events occur, such as missed premium payments, enrollment in other coverage, Medicare entitlement, or termination of the employer’s health plan.
COBRA includes a 30-day grace period for monthly premium payments. If payment is not made by the end of that grace period, coverage may be terminated and does not have to be reinstated.
Employers must report qualifying events, and plan administrators are responsible for sending COBRA notices. When the employer is also the plan administrator, the election notice must generally be sent within 44 days of the qualifying event.
COBRA generally costs the full premium (the employee share plus the employer share) plus up to a 2% administrative fee, which is why it often feels much more expensive than payroll deductions.
COBRA coverage generally lasts 18 months for job loss or reduced hours and up to 36 months for certain other qualifying events, with limited situations allowing extensions.
COBRA eligibility is triggered when a qualifying event, such as job loss, reduced hours, divorce, death of the employee, or a dependent aging out, causes a loss of group health coverage.
COBRA allows certain employees, spouses, and dependents to continue their employer-sponsored group health coverage after a qualifying event causes a loss of coverage, as long as the employer is subject to COBRA.
Yes. Most HRAs are considered COBRA-eligible group health plans, meaning employees who experience a qualifying event must be offered the option to continue the HRA through COBRA, with limited exceptions.