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Understanding COBRA

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Understanding COBRA

If you are a dependent of someone with medical insurance from an employer, and the company he or she works for has more than 20 employees, you may be eligible for COBRA. If you are an independent, refer to Web sites below for additional information.

COBRA stands for Consolidated Omnibus Budget Reconciliation Act, a law that requires employers with more than 20 employees who provide health insurance for their employees to offer temporary coverage to qualified employees and their dependents for a specific amount of time.

You are eligible, under COBRA, for 36 months of continued insurance if you, the dependent, grow too old to receive benefits.

The law says:

  • If employees and dependents of employees are entitled to COBRA benefits, the health plan must give them a notice stating their right to choose to continue benefits provided by the plan.

  • Employees and their dependents have 60 days to accept coverage or lose all rights to benefits.

  • Once COBRA coverage is chosen, employees are required to pay for this temporary coverage.

Important: Your benefits will be the same as before, but you must pay the entire premium without any help or subsidy from the employer.

If you’re interested in COBRA, you can learn more about it by visiting the U.S. Department of Labor Employee Benefits Security Administration FAQs About COBRA or visiting www.cobrainsurance.com.


 

 

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