COBRA Elections

Recently, we were made aware that COBRA benefits can be bundled by the employer. That means that it could be an "all or nothing" choice of benefits (medical, dental and vision), depending on how the employer chooses to implement COBRA. Employees should always ask their former employer about this to make sure they understand the choices they have if electing COBRA.

Do I have to elect benefits under COBRA

No. Many times, shopping the open market is a much better option than choosing COBRA. Rates can be significantly less, especially with healthy families. In addition, the open market provides the option of selecting from multiple carriers – increasing the opportunity to find an affordable option to COBRA. In addition, some of the plans available today have tax advantages that may not be available with group health plans.

How do I qualify for COBRA?

COBRA is available from employers offering group insurance who employ 20 or more people. The election period is the 60 days, beginning after the last day of group coverage. Benefits under COBRA generally last up to 18 months.

For an employee to qualify for COBRA, there must be a reduction in hours or a termination -- either voluntary or involuntary. Spouses and dependents can also qualify if the employee is entitled to Medicare and receives benefits, in the event of the employee's death, or due to a divorce or legal separation.

Who is eligible for COBRA?

Who is eligible?

Family members who are considered “qualified beneficiaries” include the covered employee, spouse, dependent and children – even adopted children. Each qualified beneficiary has individual rights to make a choice about continuation of their health benefits. This means that COBRA can be used as an option for all or part of the family.

COBRA Q & A

What is COBRA?

COBRA is an acronym for the Consolidated Omnibus Budget Reconciliation Act of 1985. This legislation governs the continuation of insurance benefits when leaving a job -- including health, dental and vision coverage.