Continuation under COBRA

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, is a law that allows people to keep their health insurance coverage after they leave a job, lose their job, or experience certain life events that would normally end their health insurance.

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Read the Ultimate Guide to COBRA from Ameriflex.

Here's how COBRA elections work in simple terms:

1. Job Loss or Life Event: When you leave a job or experience a life event like divorce or a reduction in work hours, your employer must notify you about your COBRA rights. 

2. Option to Continue Coverage: You have the option to keep the same health insurance plan you had through your job, but now you'll have to pay for it yourself. Your employer will no longer cover the cost, so you'll have to pay the full premium.

3. Limited Time: You have 60 days, to decide if you want to elect COBRA coverage. If you choose to do so, you'll have to make retroactive payments for the time you were without coverage.

4. Coverage Continuation: If you elect COBRA, your health insurance coverage will continue just like it did when you were employed. You can see the same doctors and use the same benefits.

5. Cost: While COBRA allows you to keep your existing coverage, it is more expensive because you have to pay the full premium, which includes the portion your employer used to cover plus a 2% administrative fee.