COBRA Conversion Rights

COBRA was created to help employees keep health coverage.

The Consolidated Omnibus Reconciliation Act was passed in 1986 and provided for continuation of health coverage for employees who may have otherwise lost coverage. Certain events may qualify an employee for conversion of insurance coverage under COBRA.

Termination

An employee may continue health insurance coverage under COBRA if he has been terminated for reasons other than gross misconduct, according to U.S. Department of Labor.

Reduced Hours

An employee may qualify for health insurance conversion if her work hours have been significantly reduced to where she is no longer covered by her employer.

Spouses and Children

The spouse and children of a terminated employee may qualify for COBRA if termination was for any reason besides gross misconduct. A spouse and children may also qualify in case of divorce or legal separation or death of the covered employee. COBRA is also effective if the covered employee qualifies for Medicare.

References

• Department of Labor: FAQs For Employees About COBRA Continuation Health Coverage