The Cobra program is a federal law that allows certain individuals to temporarily continue their employer-sponsored health insurance coverage after a qualifying event, such as loss of employment, reduction in hours, or divorce.
Under the Consolidated Omnibus Budget Reconciliation Act (COBRA), eligible employees and their dependents have the option to elect to continue their group health plan coverage for a limited time after a qualifying event, provided they pay the full premium themselves. The employer can charge up to 102% of the premium for COBRA coverage.
COBRA coverage is available to most private sector employers with at least 20 employees, as well as state and local government employers, and certain employee organizations. It is administered by the Department of Labor's Employee Benefits Security Administration (EBSA).
If you have recently experienced a qualifying event and are considering your options for health insurance coverage, you may want to consider electing COBRA coverage if you are eligible. You should also consider other options, such as enrolling in a individual health insurance plan through the Health Insurance Marketplace or finding coverage through a spouse or domestic partner's employer.
Benefits of enrolling in cobra:
There are a few potential benefits to enrolling in COBRA coverage:
Continuous coverage: COBRA allows you to continue your employer-sponsored health insurance without a gap in coverage, which can be especially important if you have a pre-existing medical condition or are taking medications that require continuous coverage.
Familiarity: If you are already enrolled in an employer-sponsored health plan, you may be familiar with your coverage and provider network, and electing COBRA can allow you to continue with the same coverage and providers.
Temporary coverage: COBRA coverage is typically only available for a limited time, usually 18 months for most qualifying events. This can be helpful if you are in transition and need temporary coverage while you explore other options.
It's important to note that COBRA coverage can be more expensive than other options, as you are responsible for paying the full premium (including the portion that your employer used to pay) plus a 2% administrative fee. You may be able to find more affordable coverage through the Health Insurance Marketplace or through a spouse or domestic partner's employer.
Do any states offer cobra:
COBRA is a federal law that applies to most private sector employers with at least 20 employees, as well as state and local government employers and certain employee organizations. As a federal law, COBRA applies to all states and territories.
However, some states have their own continuation coverage laws that may provide similar benefits to COBRA. These state laws, also known as "mini-COBRA" laws, may apply to smaller employers or may provide additional protections for employees. It's important to check with your state's insurance department or department of labor to see if you are eligible for state continuation coverage.
In addition to COBRA and state continuation coverage laws, some employers may also offer their own voluntary continuation coverage plans to employees. These plans are not required by law, but may be offered as an employee benefit.
What states offer mini cobra:
All states have continuation coverage laws that are similar to COBRA, but these state laws are often referred to as "mini-COBRA" laws because they may have different eligibility requirements and may not provide the same level of coverage as COBRA. Some states have mini-COBRA laws that apply to smaller employers that are not subject to COBRA, while others have mini-COBRA laws that provide additional protections for employees beyond what is required by COBRA.
Here is a list of states that have mini-COBRA laws:
Alabama
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Georgia
Hawaii
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
It's important to note that each state's mini-COBRA law may have different eligibility requirements, duration of coverage, and premium costs. If you have recently experienced a qualifying event and are considering your options for health insurance coverage, you should check with your state's insurance department or department of labor to see if you are eligible for mini-COBRA coverage. You may also want to consider other options, such as enrolling in a individual health insurance plan through the Health Insurance Marketplace or finding coverage through a spouse or domestic partner's employer.