Qualifying for COBRA Health Insurance

There are various sets of criteria for different employees and other persons who may be qualified for COBRA Health Insurance coverage. As well as meeting these criteria, eligible employees can generally just accept COBRA health coverage after specific qualifying events, as explained below.

Who Is Eligible for COBRA Health Coverage?

Employers with up to 20 or more full-time equivalent employees are generally assigned to offer COBRA health coverage. The work hours of part-time employees are able to be grouped together to make a full-time equivalent employee, which selects the general applicability of COBRA to the employer. COBRA applies to plans provided by private sector employers as well as those sponsored by most state and local governments. Federal employees are generally covered by a law similar to COBRA Health Insurance.

An eligible employee for COBRA should be enrolled in a company-sponsored group health insurance plan the day before the succeeding event happens. The plan should be efficient on more than 50 percent of the employer’s usual business days in the prior calendar year.

The employer should stay to propose its existing employees a health plan in order for the leaving employee to be eligible for COBRA Health Insurance. In the event that the employer closes the business or the employer no longer provides health insurance to current employees, the outgoing employee may no longer be qualified for coverage COBRA. More details!


Employees qualify for COBRA Health Insurance Coverage for the following:

  • Voluntary or involuntary loss of work, for example – the 2020 COVID-19 pandemic.
  • A reduction in the number of hours of employment that results in employer insurance coverage loss.


Along with the two succeeding events for employees, their spouses may be eligible for COBRA health coverage if the following conditions happen:

  • The covered employee is permitted to Medicare.
  • Death of the covered employee.
  • Legal separation from the covered employee.

Dependent Children

The qualifying events for dependent children are usually similar as for the spouse with an addition:

  • Loss of dependent child status, according to plan rules.

The employer or beneficiaries must inform the plan within a month of the succeeding event that applies to the employee. If the qualifying event is divorce, legal separation, or loss of dependent status of a child, the employee or beneficiaries must inform the plan.

COBRA Health Insurance Benefits and Available Coverage

COBRA Health Insurance rules establish the coverage offer that is matching to that offered by the employer to its existing employees. Any variations in plan advantages for current employees will apply to eligible beneficiaries as well. All eligible beneficiaries must be able to make similar decisions as non-COBRA beneficiaries. Basically, health insurance coverage for existing employees remains just the same for former employees under COBRA. You must be provided at least 60 days to opt for whether or not to choose continuance health coverage.

COBRA Health Insurance Coverage is extended for a limited period of 18 or 36 months from the date of the qualifying event, depending on the valid scenarios. One may gain to extend the maximum 18-month period of continuance health coverage whether any of the qualified employees in the family is incapacitated as well as meets specific needs. Or if a second succeeding event happens, which may include the legal separation of a covered employee and spouse, the death of a covered employee, a covered employee who becomes permitted to Medicare, or loss of dependent child status.

If you need to know more, check out https://www.marrettcounseling.com/what-to-know-if-you-must-sign-up-for-cobra-health-insurance/

What to Know if You Must Sign Up for COBRA Health Insurance

Cobra health insurance alternatives are widely sought after as millions find themselves unemployed. Regardless of the current pandemic, losing your job at any time can be stressful and there is always a worry over health care costs. COBRA is increasingly popular, but for some, it is an expensive option to consider and that’s why alternatives are being sought. Unfortunately, it won’t be everyone who can find a suitable health insurance alternative to COBRA. So, what should you know if you must opt for COBRA?

What COBRA Actually Is

Unfortunately, a lot of people rush into COBRA without fully knowing what it is and that’s an issue, to say the least. So, what is it? COBRA is a federal law program that ensure employers offer health insurance coverage if they’re fired. Usually, this is a program for businesses with twenty employees or more. However, eligibility depends on whether you personally qualify for Medicare or social assistance. While there are many Cobra health insurance alternatives available, this remains the popular choice for most.

The Type of Coverage Available

While supplement insurance isn’t available, you will receive the same coverage you had previously. This does mean life insurance and disability coverage aren’t included; however, independent private policies can be activated, nonetheless. Fortunately, you’re able to visit the same doctors as before and continue with the plan you had. There won’t be any gaps either as coverage starts on the day you left employment. While Cobra health insurance alternatives are available, this does offer a viable solution to millions, nonetheless.

State Rules May Vary

Generally, companies with fewer than twenty employees won’t be eligible for COBRA. However, this may not remain the same in every state in the U.S. Some states may incorporate a mini law that states even if a company has fewer employees, they’re be able to apply for COBRA. Again, this is something you need to research as it can vary. If it isn’t available in your area – because there are fewer than twenty employees – then Cobra health insurance alternatives may be necessary. More details!


The unfortunate truth is that COBRA isn’t cheap. This is an expensive program because you have to pay the full premiums, along with a small 2% admin fee. That, unfortunately, does cause a host of issues for thousands. Cobra health insurance alternatives are wildly sought after because of the costs associated with it. Monthly payments are likely to be considerably higher than through the employer, so that is something to take into consideration. Of course, if you can afford the monthly costs and you can’t find an alternative, it’s useful.

Understand What COBRA Entails

COBRA doesn’t work for everyone. While it does offer a great solution for millions who’ve recently been terminated or laid off, it mightn’t be right for you personally. Sometimes it will be down to money and how expensive it is, compared to the costs via your employer. It’s important to look at Cobra health insurance alternatives as well as exploring COBRA too, so that you find the right solution for you. Click here for more information: https://www.marrettcounseling.com/are-you-making-these-7-cobra-mistakes/

Are you making these 7 COBRA mistakes?

On the off chance that you give cobra health insurance advantages to your representatives, you may likewise be liable for offering COBRA continuation coverage in specific circumstances. Doyou average at least 20 workers on an ordinary business day during a schedule year, and are notan administration substance or a congregation?

Regardless of whether you utilize an outsider for regulating COBRA advantages or handling itin-house, check to ensure you’re not committing these seven errors. Checkout more in detail on https://www.nationalinsurancedirect.org/cobra-health-insurance-questions/

Mistake #1: excluding all group health plans

If your business is needed to consent to COBRA, any group health plans you give are dependent upon the law. Other than a significant cobra health insurance plan, this may incorporate dentaland vision coverage, physician, recommended drug plans, adaptable spending accounts, health repayment accounts, nearby medical centers, and specific representative help plans that give medical and additionally advising administrations.

Mistake #2: Not appropriately checking your representatives

You have both full-time representatives and low maintenance workers totally at your organization, just as any usually controlled or subsidiary organizations, to determine whether you meet cobra health insurance’s20-worker edge.To do this, tally each low maintenance representative as a small amount of a full-time worker,equivalent to the number of hours the short maintenance representative worked isolated continuously a worker must attempt to be viewed as full-time. Click here to get about health insurance options.

Mistake #3: Not informing the perfect individuals at the ideal time

As indicated by the Department of Labor, group health plans must give covered representatives and their qualified life partners and wards with specific notification clarifying their COBRA rights. Not sending the necessary information inside the ideal period can bring about steep punishments. Required information for cobra health insurance includes:

  • Initial Notice presently called General Notice
  • Employer’s Notice of Qualifying Event
  • Election Notice
  • Notice of Unavailability
  • Notice of Early Termination

It’s essential to send all correspondences to representatives, qualified mates, and wards when your workers’ companions and communities are eligible for COBRA.

Mistake #4: Miscalculating the coverage time frame orterminating coverage early

Distinctive qualifying occasions have diverse coverage continuation periods. The most significant time of coverage for terminated representatives or workers with decreased hours is a year anda half. All other passing occasions have the most considerable cobra health insurance coverage time of three years for the qualified mate and ward kids.

Mistake #5: Only conforming to government laws

Notwithstanding the government COBRA law, a few state shave extra or various prerequisites.Conditions may necessitate that businesses offer continuation coverage on the off chance that they are underneath the 20-representativecobra health insurance edge, follow different requirements for worker qualification, or have various most extreme coverage times.

Mistake #6: Treating COBRA members in an unexpected way

Qualified recipients must get similar advantages, decisions, and administrations as dynamic representatives. That implies you should offer them all accessible plans during an open enlistment period—regardless of whether they didn’t choose explicit coverage because of COBRA.

For instance, a recipient who is proceeding with coverage for self-just medical has the privilege to add worker and family dental cobra health insurance during open enlistment if dynamic representatives can do as such.

Mistake #7: Not understanding the connection between Medicare and COBRA

Qualification for COBRA might be influenced by Medicare privilege (which means qualified and enlisted) because old enough, disability or ESRD. This is exceptionally uncommon and applies to retired person plans where the retired person loses coverage when the former person gets qualified for Medicare. Group health plans may not “consider” Medicare qualification while determining qualification.

As portrayed above, national cobra health insurance qualification can likewise be a second passing occasion for a companion and ward kids under the various passing occasion rule. Thereis also an extraordinary Medicare expanding rule for the mate and ward youngsters and the disability augmentation rule for all people who are qualified recipients regarding the termination of business or decrease of hours.

With the entirety of the above principles and guidelines relating to COBRA, it’s critical to guarantee you’re not committing any errors with this continuation coverage.

Copyright 2020-21 | All Rights Reserved.