Q&A

In which circumstances may the right to elect continued coverage under COBRA exist for a covered spouse or dependent?

In which circumstances may the right to elect continued coverage under COBRA exist for a covered spouse or dependent?

A covered employee’s spouse who would lose coverage due to a divorce may elect continuation coverage under the plan for a maximum of 36 months. A qualified beneficiary must notify the plan administrator of a qualifying event within 60 days after divorce or legal separation.

What happens if my former employer has no health insurance?

Instead, it provides the right to continue your enrollment in your former employer’s health insurance plan, provided you pay the premiums, plus a 2% fee. (If your former employer has no health insurance plan, you have no COBRA rights.)

Is there a way to continue health insurance after a job loss?

(For information on COBRA, see COBRA: Continuing Health Insurance After a Job Loss .) Because COBRA generally cannot be enforced by any means other than a complex and expensive lawsuit, however, state laws that give former employees the right to continue group health insurance coverage after leaving a job are often a better alternative.

What happens if your former employer has no Cobra plan?

(If your former employer has no health insurance plan, you have no COBRA rights.) Some employers assist terminated employees by subsidizing their continued coverage, although none are required to do so.

Can an employer offer health insurance only to employees?

Yes, an employer can choose to offer medical insurance benefits only to employees, not their family members, but it must apply the rules consistently, Sanicola says. An employer cannot discriminate by extending coverage to some employees’ family members but not to others.

(For information on COBRA, see COBRA: Continuing Health Insurance After a Job Loss .) Because COBRA generally cannot be enforced by any means other than a complex and expensive lawsuit, however, state laws that give former employees the right to continue group health insurance coverage after leaving a job are often a better alternative.

How many months does an employer have to have health insurance?

Employers affected: Employers with fewer than 20 employees. Eligible employees: Full-time (25 or more hours per week) employees covered by employer’s health insurance plan. Length of coverage for employee: 18 months. Length of coverage for dependents: 18 months.

Can a former employee be rehired after completing the eligibility requirements?

Also, former employees who are rehired who had completed the plan’s eligibility requirements before terminating may begin participating immediately upon rehire, unless the employee’s original entry date would have been later, in which case the later entry date applies.

Do you have to be an active employee to qualify for Cobra?

To be eligible for COBRA coverage, you must have been enrolled in your employer’s health plan when you worked and the health plan must continue to be in effect for active employees.