COBRA Medical Coverage


What is COBRA medical coverage?

COBRA is the acronym for Consolidated Omnibus Budget Reconciliation Act.


What does COBRA offer?

COBRA gives workers and their families who lose their health benefits the right to choose to continue obtaining group health benefits provided by their group health plan for limited time periods, under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events.


Who is this service for?

For employees’ involuntary termination of their employment or reduction of hours subject to certain qualifications.


Qualified individuals may be required to pay the entire premium, for coverage, up to 102% of the cost to the plan.


What are the requirements to have COBRA coverage?

COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families a temporary extension of health coverage (called continuation coverage) in certain instances in which coverage under the plan would otherwise end.


The ARPA provides premium assistance, a 100% federal subsidy (i.e., makes the health insurance coverage no cost to the former employee), for COBRA premiums for eligible individuals who have a COBRA option through their employment beginning April 1 and continuing through September 30, 2021. On top of that, this subsidy is also tax-free.


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