Who Must Provide COBRA Insurance?
COBRA, or Consolidated Omnibus Budget Reconciliation Act, is a federal law that was passed in 1986 which addresses the continuation of health insurance coverage if you leave your job.
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Employer Requirements
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Employers that offer group health insurance plans and have at least 20 full-time employees must allow continuation of health care benefits under this law.
Eligibility
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Continuation of health care coverage is extended to people who are enrolled in an employer's group health plan and are fired for reasons other than gross misconduct, retire, quit or have a reduction in work hours.
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Also Eligible
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In addition to the employee, the continuation of coverage is available to the spouse, divorced or separated spouse, dependent children and children who lose their dependent status due to their age in accordance with the employee health plan rules.
Premiums
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The premiums for the extended coverage are paid by the insured. Employers are not required to pay part of the premium.
Continuation Period
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The coverage continuation period usually lasts for 18 months. If the insured becomes disabled within 60 days of the beginning of the extended coverage, he may be qualified to extend the coverage for an additional 11 months.
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