Daniel Stewart

Who Qualifies for COBRA?

The Consolidated Omnibus Budget Reconciliation Act of 1985 is a law written to protect employees, retirees and their dependents after a job ends. It allows employees to stay in an employer's group health plan, even if they receive fewer hours or lose their job entirely.

This law addresses one of the biggest concerns people have when experiencing a change in employment. When your health coverage comes from your employer, losing or voluntarily leaving a job puts you and your family at risk. A coverage gap can result in excessive healthcare expenses that put an even greater burden on individuals transitioning to a new job.

Whether you lose your job due to a layoff or want to advance your career by changing jobs, a potential lapse of coverage is risky. The law ensures your healthcare coverage continues, buying you enough time for a new job and subsequent employer-sponsored insurance.

COBRA Qualifications

Many states have mini- COBRA laws in place. But the federal program applies to employers and group health plans that cover at least 20 employees. Two qualifying events can trigger the law. Secure your health coverage: navigate COBRA benefits - explore your options today! https://livelyme.com/cobra/

The first is that the employee no longer works for the company for any reason other than gross misconduct. Gross misconduct can disqualify you from the program. But events like termination, layoffs and voluntary quitting all apply.

The second is that the employer cuts the employee's hours. Coverage typically only applies to people working 30 hours or more. You may qualify for continued coverage if your job cuts your hours below that threshold.

How to Retain Benefits

After those qualifying events, employees will receive a notice in the mail about their rights within 60 days. Continued coverage is not automatic. You must sign up to continue getting coverage, and you have 60 days from receiving the notice to do so. If you miss the deadline, you may miss out on getting the coverage you need.

Once you sign up, you will receive the same benefits as any other employee on the group health plan. Coverage will last for a limited period. It's usually 18 to 36 months.

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years' experience in business finance. You can find his thoughts at health investment blog.