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What is COBRA health coverage?

LiveRec EditorialUpdated

COBRA health coverage is a US federal law right that lets workers and their families temporarily keep job-based plans after events such as job loss or reduced hours. Coverage is usually up to 18 months, and the person generally pays the full premium. It helps avoid a gap in coverage between jobs.

Key points from the Department of Labor

Spouses and children can enroll even if the former employee does not. The Department of Labor says coverage is usually up to 18 months and certain life events can extend it to 36 months. You have 60 days to enroll, counted from the later of the end of job-based coverage or receipt of the COBRA election notice.

Who pays

The former employee usually pays the full premium. An employer may agree to cover some or all of it as part of a separation agreement, which is why it is worth asking about in a severance discussion.

Example

A worker is laid off and receives an election notice. She enrolls within the window, keeps the same plan and doctors, and pays the premium herself until she starts a new job with coverage.

Sources

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.