What is COBRA Insurance?

What is COBRA health insurance?

COBRA is an acronym that stands for Consolidated Omnibus Budget Reconciliation Act(COBRA). COBRA insurance is the ability to continue your health insurance coverage through your previous employer. While you can continue your coverage and plan, you will be required to pay 100% of your health insurance premium.

What does COBRA stand for?

It may seem misleading that while you are able to stay on your employers health insurance plan, you are required to pay 100% of the cost. COBRA is simply an act that states you cannot be left uninsured following your change in employment. COBRA officially stands for: Consolidated Omnibus Budget Reconciliation Act.

How long can I stay on COBRA?

Through the COBRA federal law passed in 1985, if you experience a loss of coverage, you may be entitled to the opportunity to stay on your previous health insurance plan for up to 18 months, and in some instances, 36 months.

Advantages of COBRA Health Insurance

The circumstances that brought COBRA health coverage to your choices might not be advantageous, but there are some advantages to the COBRA act. If you are required to purchase an individual health insurance policy, your plan options include many private health plans which can cost significantly less for similar coverage. You will also have the opportunity to review your health coverage and find options that save money on your prescription expenses.

Eligibility for COBRA health coverage

COBRA health insurance coverage has a few requirements. First, your employer must have offered health insurance coverage and you be enrolled in those health insurance benefits. Second, you must have been enrolled in health insurance coverage through your employer in order to have the opportunity to stay on that health plan coverage. Third, generally you must to not have been terminated by your employer in order to be eligible for continuation coverage.

Not sure how to buy health insurance?

Health insurance can be costly and complicated. Learn what you need to know before you buy a health plan today with our guide to buying.

Find out more about private health insurance plans

Private health plans can save thousands per year in premiums because you don’t pay for coverage that you don’t need. Learn more about private health plans here

Did you just lose health coverage from change of employment?

Change in employment is a qualifying event for a special enrollment period, but you can also stay covered through COBRA continuation. Find our what your health insurance options are. Change in employment health insurance guide

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