In this video we'll introduce you to a benefits program called Cobra and explain how it works Cobra is an acronym for the consolidated Omnibus Budget Reconciliation act but luckily it is almost always referred to as Cobra Cobra gives you the opportunity to continue in your employer-sponsored health plan if you lose your job so how.
Does it work you were eligible for Cobra if your company's health plan covers at least 20 employees and you have had an acceptable qualifying event a qualifying event is something that causes you to lose your health coverage for an employee a qualifying event conclude quitting your job having your hours cut back or losing your job for most any.
Reason other than gross misconduct like stealing as long as your spouse or other dependents were covered on your medical plan before the qualifying event they too can be covered on Cobra examples of qualifying events where your spouse or other dependents might enroll in Cobra coverage our divorce or legal separation you become eligible for Medicare and.
Your spouse is on your health plan your dependent no longer qualifies as a dependent under your health plan or if you pass away if you have one of these qualifying events your employer is responsible for notifying you of your option to enroll in Cobra coverage within 14 days and you will have at least 60 days to decide if you want to.
Enjoy if you choose COBRA coverage the length of time you can keep it depends on your qualifying event for employee events like termination and reduction of hours you can keep COBRA coverage for up to 18 months starting from the date of the qualifying event for all other events your spouse and other dependents can.
Have coverage for up to 36 months so how much does it cost to get COBRA coverage before starting Cobra you split the cost of your health plan in some way with your employer so that you paid some of the cost and your employer paid some of the cost now that your employer is no longer paying a portion of the cost you will pay for 100% of the plan cost in.
Addition there is a fee to cover the cost of administering the Cobra program it's usually around 2% so your total monthly cost will likely be 102 percent of the cost of the plan despite the expense this still might be the most cost effective way to get a quality health plan compared to alternatives available to you at the.
Time be sure to do adequate research on both the cost and the level of coverage for a plan before you decide whether to choose Cobra or another option to sum it up Cobra provides the ability for you and the dependents covered on your health plan to keep coverage after you lose your job or lose coverage for other.
Reasons the cost is generally 102 percent of the full cost of the plan and you can keep her for 18 or 36 months depending upon the qualifying event