The most common questions I receive from this blog regards COBRA health insurance benefits.
Let’s review eligibility.
If your company has 20 or more employees enrolled in a group plan who have worked at least half the year, you are eligible for COBRA coverage. This includes full and part-time workers.
Under COBRA, if you voluntarily resign from a job or are terminated for any reason other than “gross misconduct,” you are guaranteed the right to continue your employer’s group plan for up to 18 months at your own expense. In many cases, your spouse and dependent children are also eligible for COBRA coverage, sometimes for as long as three years (36 months).
But, it’s expensive. If you continue your plan under COBRA, you can be charged 100 percent of the premiums plus a 2 percent administrative fee.
The good news is that the American Recovery and Reinvestment Act of 2009 (the stimulus package) has a provision to cover up to 65% of the cost of COBRA insurance premiums. There is a good article regarding COBRA insurance benefits from Insure.com dated 8/5/09.”
You can also read more at my 3/25/09 post, Help paying for COBRA benefits.
Good luck.
