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August 9, 2010

Introduction to COBRA Health Insurance

What Is COBRA?

COBRA is a temporary extension of your participation in your employer's health insurance plan at your own cost. The program takes its name from the Consolidated Omnibus Budget Reconciliation Act. For people with a pre-existing medical condition, it may be a good choice given that you cannot be denied COBRA coverage because of your medical history. However, COBRA insurance can be very expensive so comparing your COBRA and non-COBRA health insurance options is highly recommended.

Eligibility & Qualifying Events

People who are eligible for COBRA coverage have the option of continuing their employer-sponsored health plan for a limited period of time. COBRA requires three requirements be satisfied for COBRA coverage eligibility: 1) your employer is obligated to provide COBRA coverage; 2) you are a qualified beneficiary; and 3) a 'qualifying event' has occurred.

The below table demonstrates the qualifying events for employees, the spouses of employees, and dependent children:

Employee
  • If you leave your job voluntarily (including retirement)

  • If your hours at work are decreased resulting in ineligibility for health benefits under your employer's insurance policy

  • If you leave your job involuntarily for any reason other than gross misconduct
Employee's Spouse
  • If the work hours of the employee are decreased

  • If the employee discontinues employment at the job for any reason other than gross misconduct

  • If the employee becomes eligible for the Medicare program

  • If the spouse divorces or legally separates from the employee

  • If the employee dies
Dependent Children
  • If the dependent child loses dependent child status under the employer's health insurance plan

  • If the work hours of the employee are decreased

  • If the employee discontinues employment at the job for any reason other than gross misconduct

  • If the employee becomes eligible for the Medicare program

  • If the spouse divorces or legally separates from the employee

  • If the employee dies

Our parent company, eHealth, provides assistance comparing and applying for COBRA health insurance coverage.

* By submitting this form, you agree that a licensed sales rep may contact you to discuss the specific types of products listed above. The sales agent that will be discussing plan options with you is either employed or contracted by a Medicare Health plan or prescription drug plan that is not the Federal government, and they may be compensated based on your enrollment in a plan. Submitting this form does NOT affect your current enrollment, nor will it enroll you in a Medicare Advantage plan, Prescription Drug Plan, or other Medicare plan. A Medicare Advantage plan is a health insurance plan provided through a private insurer and delivers Medicare Part A and Part B benefits. A Part D Drug plan is a prescription drug insurance plan provided through a private insurer and delivering Medicare Part D benefits. A Medicare Supplement plan is a health insurance plan provided by a private company that fills in the "gaps" in original Medicare coverage. By submitting this form, you acknowledge that you have read and understand PlanPrescriber's Terms and Conditions.