Understanding COBRA
COBRA Overview - Enables qualified, recently separated employees to continue their group coverage by assuming responsability for the total premium (plus a 2% administrative fee) for their coverage. COBRA generally is available for qualified individuals leaving a company with 20 or more employees. Some states have created COBRA-like programs for groups of less than 20 full time employees.
COBRA Coverage
- Allows for an extension of group benefits for a period of up to 18 months in most cases. In some instances COBRA can be extended for up to 36 months.
- You get the same coverage as your former employer offers existing employees (assuming your former employer is still in business).
- You pay the full cost of the coverage, plus a 2% administrative fee.
- Full premium means any amount you contributed, PLUS what your employer contributed, PLUS the 2% fee
- Exhausting COBRA coverage is required for HIPAA eligibility.
To learn more, please visit: COBRA Compare