COBRA requires continuation coverage to be offered to covered employees, their spouses, former spouses, and dependent children when group health coverage would otherwise be lost due to certain specific events.
Is COBRA coverage automatic?
Coverage is not automatic. While newly eligible individuals will not need to pay premiums, they will still need to elect COBRA coverage in order to take advantage of the subsidy.
How long can a spouse stay on COBRA?
36 months
If the qualifying event is the death of the covered employee, divorce or legal separation of the covered employee from the covered employee’s spouse, or the covered employee becoming entitled to Medicare, COBRA for the spouse or dependent child lasts for 36 months.
Can I elect COBRA for my spouse only?
COBRA continuation coverage may be elected for only one, several, or all dependent children who are qualified beneficiaries. The employee or the employee’s spouse (if the spouse is a qualified beneficiary) can elect continuation coverage on behalf of all qualified beneficiaries.
Why is COBRA coverage so expensive?
The cost of COBRA coverage is usually high because the newly unemployed individual pays the entire cost of the insurance (employers usually pay a significant portion of healthcare premiums for employees).
How long does employer have to pay COBRA?
The plan should establish due dates for any premiums for subsequent periods of coverage, but it must provide a minimum 30-day grace period for each payment. Plans can terminate continuation coverage if full payment is not received before the end of a grace period.
How long after termination can you get COBRA?
You’ll have 60 days to enroll in COBRA — or another health plan — once your benefits end. But keep in mind that delaying enrollment won’t save you money. COBRA is always retroactive to the day after your previous coverage ends, and you’ll need to pay your premiums for that period too.
