Who Qualifies for Cobra?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a law that initially went into effect in 1986 and is designed to provide health insurance benefits for individuals who no longer work at their latest place of employment. Before you can receive health benefits through COBRA, you have to meet certain eligibility guidelines.
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How COBRA Works
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When you quit or lose your job involuntarily, one of your most pressing issues may be to find a health insurance plan to cover you and your family. Even if you get another job right away, it might be a few months before you are eligible to participate in the group health insurance plan. To overcome this issue, COBRA allows you to stay on your group health insurance plan that you were previously enrolled in. You can simply pay the premium out of your own pocket to your employer.
Qualifying Events
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When you are an employee of a business, you have to go through a qualifying event before you can receive coverage through COBRA. In most cases, the major qualifying event is that you lose your job. This could happen because you are fired or laid off. It could also occur if you voluntarily quit your job. In addition, if your hours are reduced so that you are no longer a full-time employee, you may also lose your health benefits. Reduction in hours to part-time status is also a qualifying event that would make you eligible for COBRA.
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Dependent and Spouse Qualifying Events
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If you are on a group health insurance plan that covers your family, family members may continue to receive health benefits through COBRA, as a result of different qualifying events. For example, if you die or become eligible for Medicare, your spouse and dependents can elect to be included on COBRA coverage. If you get a divorce, your spouse can also qualify for COBRA.
Other Factors
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According to the Department of Labor, there are still other factors that affect your eligibility for COBRA coverage. For example, your employer has to have had a plan that was eligible for COBRA coverage. Some employers do not have to allow COBRA access if they have below a certain number of employees. After you lose your coverage, the employer also has to continue providing a group plan for everyone else in the company. You also have to have been enrolled in the group plan before you lost your job.
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