How to Pay Health Insurance Under COBRA
Having adequate health insurance coverage is a concern for many Americans. Some are fortunate to have coverage through their workplace, but they often wonder what to do if they resign or are fired from their job. Thankfully the federal government created COBRA, which allows workers to maintain their healthcare insurance in most cases for a period of time after their last date of employment. If you plan to use this program, it is important that you understand how to pay health insurance under COBRA.
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Instructions
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Talk to your employer to determine if you are eligible. Before you leave your job you can talk to your human resources specialist to determine if you are eligible for COBRA benefits. In most cases you are eligible as long as the company's healthcare plan continues and the company employs more than 20 people. If a company is dissolving or shutting its doors, you are not eligible for COBRA since no healthcare coverage will exist for any employees.
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Get paperwork to enroll in COBRA. If you do decide to use COBRA, you can obtain the paperwork from the human resources office at your last job. Most businesses give their employees information about COBRA as well as an enrollment form on their last day of employment. You don't have to file on that day since you have 30 days from your last day to enroll in the program.
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Pay the premium every month. If your employer was covering a portion or all of your premium for your health insurance, you will be required to pay this plus any part you were already paying. In addition, there can be a 2 percent administrative fee attached to your monthly premium as well.
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Notify your former employer when you want to stop COBRA. Hopefully within a short period of time you will find health insurance elsewhere, such as another place of employment or by enrolling directly with an insurance company. If not, you can keep COBRA up to 18 months after your last day and, under certain circumstances, even longer.
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Tips & Warnings
You can find out more about COBRA by visiting the website of the U.S. Department of Labor.
Your last employer should have a booklet that details all the rules and regulations surrounding COBRA and your employer.
