COBRA health insurance coverage guarantees employees the right to keep their group health care coverage for up to 18 months when they would otherwise lose it after leaving their job. COBRA generally covers employees who resign or are terminated for any reason other than “gross misconduct.”

However, there is one big difference. While employees are guaranteed the right to the same health care coverage they previously had, they are required to pay for all of it out of their own pocket. Their former employer is not required to subsidize the payments. Employers often cover a substantial portion of health insurance premiums, so COBRA coverage can be expensive.

COBRA coverage can also be made available to an employee’s family members, sometimes for up to 36 months. COBRA is not available for individual health care plans that are purchased outside of a group plan through an employer or an association. If you lose individual health care coverage, there are no COBRA laws that require an extension.

If you have any other questions about COBRA please give us a call.