Just the Facts - COBRA Basics

You Should Know...

  • Coverage lasts 18 months
  • Generally only applies to companies with 20+ employees
  • You cannot renew COBRA
  • Employers have 30 days to provide information to you
  • You must elect coverage within 60 days of leaving your job
  • You may not qualify if you were terminated for "gross" misconduct
  • Life insurance is not covered
    New COBRA Subsidy

  • 65% subsidy of COBRA premiums
  • Must have been eligible to start COBRA between 9/1/08 -12/31/09
  • Subsidy is for coverage beginning 3/1/09 (no back premiums)
  • You may be required to pay the full premium for 60 days. Refunds or credits will be issued.
  • Coverage lasts for nine months
  • Dependants are eligible
  • There is a special enrollment period for those who didn't previously elect COBRA. (Employers must send out notification by 4/18/09)
  • You must enroll within 60 days of notice of the special enrollment
  • For more information
    • Find a COBRA Alternative

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    Be A Snake Charmer - The Truth About COBRA? Get Alternative Quotes...


    You often hear "COBRA is so expensive" as though COBRA is a health insurance plan. It's not. COBRA is simply an acronym for the law that allows former employees to stay on their company's health plan. So COBRA isn't expensive, but your old company's plan may be. While you were an employee, your company paid for a portion of your health insurance premium. When you elect to stay on the plan (often called "going on COBRA"), you agreed to pay 100% of the cost.* People think COBRA is expensive because they are not used to paying the full bill for their health insurance.

    What That Means For You
    Your employer's health plan cost was based on the employee mix. This includes factors like gender, age, and health conditions. If the company had high risk applicants (older people, health issues, lot's of prescriptions, lot's of pregnancies for example) the cost of their plan will be high. That means if you are a low risk candidate, you may be able to find a cheaper plan. Make sure you understand the basic terms of a health plan, and then run some quotes. The plan that matches your needs may be cheaper than your COBRA payment.

    Get Alternative Quotes...

    *Note: You may be eligible for assistance if you qualify under the American Recovery and Reinvestment Act. For more information visit The Deparment of Labor website.