Jeffrey Wade
COBRA insurance, which stands for Consolidated Omnibus Budget Reconciliation Act, is a federal law that allows qualified workers and their families to keep their group health insurance for a limited time after a change in eligibility, such as job loss, reduction in hours, divorce, or legal separation. To get more information about COBRA benefits, individuals can refer to publications from the U.S. Department of Labor (DOL) or contact their employer's health insurance plan administrator. If you have questions about COBRA and Medicare, you can call the Benefits Coordination and Recovery Center (BCRC) at 1-855-798-2627.
| Characteristics | Values |
|---|---|
| What is COBRA insurance? | Consolidated Omnibus Budget Reconciliation Act. It's a federal law that was created in 1985 that gives individuals who experience a job loss or other qualifying event the option to continue their current health insurance coverage for a limited amount of time. |
| Who does it apply to? | Employers outside the federal government with 20 or more employees are required to offer COBRA coverage to those who qualify. However, some states have mini-COBRA laws that require insurers covering employers with fewer than 20 employees to let you keep your coverage for a limited time. |
| Who is eligible? | You must have been employed and covered under an employer's group health plan. You must have been laid off, fired, retired, or quit or had your work hours cut to the point that your employer is no longer required to cover you under a group health plan. |
| How long does the coverage last? | COBRA coverage may last for 18 or 36 months, depending on the type of qualifying event that made you eligible. |
| How much does it cost? | COBRA can be significantly more expensive than what you paid under your employer’s plan. Under COBRA, you pay 100% of the costs for the health plan, including any costs your employer previously helped pay. |
| How to get COBRA insurance? | Contact your employer’s health insurance plan administrator or your insurance carrier with questions about COBRA. Your insurance carrier is required to include COBRA rights information in your plan documents when you initially enroll. |
| Phone numbers to call | If you have questions about COBRA and Medicare, call the Benefits Coordination & Recovery Center (BCRC) at 1-855-798-2627 (TTY: 1-855-797-2627). If you have questions about COBRA and your group health plan coverage from a private employer, contact the Department of Labor. If it's from a state or local government employer, call the Centers for Medicare & Medicaid Services (CMS) at 1-877-267-2323 extension 61565. |
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What You'll Learn
Calling about COBRA and Medicare
If you have questions about COBRA and Medicare, you can call the Benefits Coordination & Recovery Center (BCRC) at 1-855-798-2627 (TTY: 1-855-797-2627). If you have questions about COBRA and your group health plan coverage from a private employer (not a government employer), you should contact the Department of Labor. If you have questions about COBRA and your coverage from a state or local government employer, you can call the Centers for Medicare & Medicaid Services (CMS) at 1-877-267-2323 extension 61565.
COBRA is a federal law that allows qualified individuals to keep their group health insurance for a limited time after a change in eligibility. COBRA applies to most private sector businesses with 20 or more employees, although some states have mini-COBRA laws that apply to smaller businesses. The amount of time that COBRA benefits last depends on the qualifying life event, but it is typically between 18 and 36 months.
Medicare is a federal government health insurance program that provides health care coverage if you are 65 or older, are under 65 and receive Social Security Disability Insurance (SSDI) for 24 months, begin receiving SSDI due to ALS/Lou Gehrig's Disease, or have End-Stage Renal Disease (ESRD) regardless of age. Medicare will be your primary insurer, and COBRA will be secondary. If you have COBRA when you become eligible for Medicare, your COBRA coverage will usually end, and you need to enroll in Medicare Part B to avoid a gap in coverage and potential late enrollment penalties. If you have Medicare Part A and become eligible for COBRA, you must be allowed to enroll in COBRA, and you should keep Medicare as your primary insurance. In some cases, you may be able to keep COBRA coverage for services that Medicare does not cover, such as dental insurance.
It is important to understand how COBRA and Medicare work together and to make timely enrollment decisions to avoid unexpected medical bills and late enrollment penalties. You can explore coverage options and compare the cost of COBRA with plans available through the Marketplace before deciding on health insurance. You may also want to consult your employer's benefits department or your local State Health Insurance Assistance Program office for help.
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Calling about COBRA and your group health plan coverage
First, it's important to understand what COBRA is and how it works. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, a federal law that allows qualified individuals who experience certain "qualifying events", such as job loss, to continue their current health insurance coverage for a limited time. This means that if you've left your job or had your hours reduced, you may be able to temporarily maintain your employer-provided health insurance through COBRA.
To be eligible for COBRA, you must have been employed and covered under your employer's group health plan. Typically, COBRA applies to employers with 20 or more employees, although some states have mini-COBRA laws that cover smaller businesses as well. When a qualifying event occurs, either you or your employer will need to notify the health plan, and you will receive an election notice that you must respond to within 60 days.
If you choose to elect COBRA coverage, it will begin the day after your employer's plan coverage ends, and you will have the same benefits you had under their group plan. This includes seeing the same doctors and providers. However, COBRA can be significantly more expensive since you may be responsible for paying the full premium, up to 102% of the cost. Additionally, COBRA coverage may only last for 18 or 36 months, depending on the qualifying event.
If you have questions about COBRA and your group health plan coverage, there are several resources available. You can contact your employer's health insurance plan administrator or your insurance carrier for more information. If your employer is not a government employer, you can also reach out to the Department of Labor. For specific inquiries about COBRA and Medicare, you can call the Benefits Coordination and Recovery Center (BCRC) at 1-855-798-2627 (TTY: 1-855-797-2627). Remember to carefully review the details of your plan and consider all your options before making a decision about your health insurance coverage.
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Calling about COBRA eligibility
COBRA, the Consolidated Omnibus Budget Reconciliation Act, lets qualified workers and their families keep their group health insurance for a limited time after a change in eligibility. This change in eligibility is often due to a qualifying life event, such as job loss, reduction in hours, divorce, or legal separation.
To be eligible for COBRA, you must meet certain requirements. Firstly, you must have been employed and covered under an employer's group health plan. Secondly, you must have experienced a qualifying life event that resulted in a loss of your health coverage. This could include being laid off, fired, or having your work hours reduced below the eligibility threshold for your employer's group health plan.
If you are calling about COBRA eligibility, it is important to understand the timeframe involved. You typically have 60 days to decide whether to elect COBRA coverage, and this coverage can last for 18 or 36 months, depending on the type of qualifying event.
When calling about eligibility, be prepared to provide information about your specific situation, including details of your employment, the qualifying life event, and your previous health coverage. It may also be helpful to have your employer's group health plan information readily available.
Remember, COBRA is not your only option for maintaining health coverage. You can compare the cost of COBRA with other plans available through the Marketplace before making a decision. Additionally, if you are eligible for Medicaid or CHIP, you can enroll at any time, offering an alternative to COBRA.
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Calling about ending COBRA coverage early
First, it's important to understand what COBRA is and when it applies. COBRA, the Consolidated Omnibus Budget Reconciliation Act, allows qualified workers to maintain their group health insurance for a limited time after a change in eligibility, such as voluntary or involuntary job loss, reduction in hours, divorce, or other qualifying life events. This act applies to most private sector businesses with 20 or more employees, and the duration of COBRA benefits depends on the specific circumstances, ranging from 18 to 36 months.
Now, if you're considering ending your COBRA coverage early, there are a few things to keep in mind. COBRA participants can indeed terminate their coverage early, but it may impact their ability to obtain a new health insurance plan. Here are the key points:
- Open Enrollment Period: If you choose to end your COBRA coverage early, you'll typically need to wait until the next Open Enrollment Period to enroll in a new Marketplace plan. The annual Open Enrollment Period runs from November 1 to January 15.
- Special Enrollment Period: However, certain life changes, such as getting married, having a baby, or losing your current health coverage, may qualify you for a Special Enrollment Period. This allows you to enroll in a Marketplace plan outside of the regular Open Enrollment Period.
- Medicaid and CHIP: If you're eligible for Medicaid or the Children's Health Insurance Program (CHIP), you can enroll at any time and do not need to wait for a specific enrollment period.
- Retroactive Cancellation: If you decide to end your COBRA coverage early, you can request a retroactive cancellation. This means that your coverage will be cancelled as of the end of the last coverage period for which you paid premiums. For example, if you paid premiums through November but want to cancel as of December 1, you can refrain from paying the December premium, and your coverage will retroactively cancel as of that date.
- Written Request: To terminate your COBRA coverage early, you must submit a written request. This request should include your Social Security number or participant identification number and any relevant documentation, such as proof of enrollment in another health plan.
- Payment of Premiums: It's important to note that if you choose to end your COBRA coverage early, you may still be responsible for any unpaid premiums up to that point. Ensure that your payments are up to date to avoid any issues.
- Dropping Dependents: You can choose to remove dependents from your COBRA coverage. This request must also be made in writing and submitted to the appropriate administrator.
Remember, it's always a good idea to carefully review your health insurance options before making any decisions. Compare the costs and benefits of COBRA with other Marketplace plans to ensure you make the best choice for your specific needs.
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Calling about COBRA and your rights
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families the right to continue their health benefits for a limited time after losing them. This may be due to voluntary or involuntary job loss, reduction in hours worked, transition between jobs, divorce, and other life events. COBRA applies to most private sector businesses with 20 or more employees.
If you experience a qualifying life event, you or your employer must notify the health plan. You will then receive an election notice, to which you have 60 days to respond. If you choose COBRA coverage, your employer may pay a portion or the full amount of your insurance premium. However, you may be required to pay the entire premium for coverage, up to 102% of the plan cost.
COBRA coverage is temporary, typically lasting 18 to 36 months. This period provides flexibility to find other health insurance options. You can compare the cost of COBRA with plans available through the Marketplace before deciding. You are not required to enroll in COBRA, and you can explore coverage options through the Marketplace. By submitting one application, you can discover if you qualify for a Marketplace plan with savings.
Remember, your dependents (spouse, former spouse, or children) are also eligible for COBRA coverage, even if you do not sign up. COBRA can be beneficial if you want to maintain your existing health plan benefits and continue seeing the same doctors.
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Frequently asked questions
COBRA stands for Consolidated Omnibus Budget Reconciliation Act. It's a federal law that allows qualified workers and their families to keep their group health insurance for a limited time after a change in eligibility, such as job loss or a reduction in hours worked.
To be eligible for COBRA insurance, you must have been employed and covered under an employer's group health plan. You must have experienced a qualifying event, such as being laid off, fired, or having your work hours reduced to the point that your employer is no longer required to cover you under a group health plan.
If you experience a qualifying event, you or your employer will need to notify the health plan. The plan will send an election notice, and you will have 60 days to respond and elect to take COBRA coverage.
The duration of COBRA benefits depends on the qualifying event that made you eligible. COBRA coverage typically lasts for 18 or 36 months. It can be terminated early if you don't pay your premiums or other fees, or if you get a job that offers health insurance coverage before it runs out.
