DISCLAIMER

You have 60 days after you get your Notification to accept coverage and 45 days to make the first payment. Read about COBRA with sample COBRA notices. Notification of your COBRA benefits is the responsibility of the plan administrator. The plan administrator is supposed to contact you within 44 days of termination but many don't, from oversight or ignorance of the law. You also might be given a notice under the Worker Adjustment and Retraining Notification Act (WARN) of 1988, if you worked for an employer with 100 or more employees. Also read the February 1999 final regulations, which cover underpayments, relocating, claims payments before enrollment, counting part-time employees, successor employers, Maximum Coverage Period, Family Medical Leave Act and beneficiaries who change their health coverage before a divorce. Under the Consolidated Omnibus Budget Reconciliation Act, if you don't get a notice mailed or hand delivered to you (and are qualified), you can either contact a government investigator, sue in federal court, or both. This might only make sense in case of an accident, premature birth, catastrophic illness or other expensive medical emergency. No one has gotten rich off the $110 per day awarded to former employees of negligent employers. Also look in our state law directory to see if your state has enacted any mini cobra laws. We have reprinted some useful pages about what happens to your benefits after an employer's bankruptcy, health care benefits after a job loss, work structure changes and your company plan, and COBRA questions and answers.

LINK: Employee's Guide to Health Benefits Under COBRA
LINK: FAQs For Employees About COBRA Continuation Health Coverage

The cost of maintaining the average COBRA policy is estimated* at $1,137 per month for family medical coverage and $410 per month for individual health insurance coverage. This is an outrageous sum to many who are laid off or worse and struggling just to pay the rent or mortgage. If you are sick or healthy, there are alternatives. Your specific COBRA cost must be sent to you in a COBRA notice.

The main requirement is that you lose employer-based health insurance benefits. This may be from:

• A reduction in hours;
• Voluntarily quitting or being downsized;
• A Divorce of a spouse with coverage;
• Legal Separation from a spouse with health insurance coverage;
• No longer qualifying for the Parents ;
• The death of a spouse;
• When a parent loses health insurance;
• A college student turning 22 because the plan only covers up to age 21;
• Someone becoming disabled leaving the workplace; and
• A spouse and dependent children's worker turns 65 and signs up for Medicare.

• Work for a Church related organization;
• Group plan ends via cutbacks or Employer's bankruptcy; or
• Were terminated for gross misconduct.

We previously mentioned the average estimates, but you need to get your specific premium disclosed in your COBRA notice. The monthly premiums are paid in full, 100% by the employee, plus a 2% administrative fee. From September 1st, 2008 through May 31st, 2010 (Read about the Stimulus), the government was subsidizing 65% of the premiums. Workers who lost their jobs after June 1st, 2010 won't be eligible for a 65 percent federal subsidy. Those already receiving the COBRA subsidy may continue to pay reduced premiums for up to 15 months, according to the Department of Labor (DOL). Many healthy people simply need temporary health insurance, which is typically much cheaper than COBRA, if you qualify medically.

In most cases, after 18 months or extended benefits, your continuation benefits end. You may still able to get new coverage under HIPAA, although the prices are generally even higher. In cases where you become disabled, your COBRA can last 29 months. If during the 18 months of continuation coverage, a second event takes place (divorce, legal separation, death, Medicare Entitlement or a dependent child ceases to be a dependent), then the original 18 months of continuation coverage can be extended to 36 months from the original date of loss of coverage for eligible dependent qualified beneficiaries. If a second event occurs, it is the qualified beneficiary's responsibility to notify the plan in writing within 60 days of the second event and within the original 18-month COBRA timeline.

That will depend on your current health and your long term goals. Enroll in COBRA if you can afford it AND: if you are in poor health, over 50, attached to your current doctor, or are on expensive medications. It helps to find out if your health insurance carrier offers conversion policies, so you can convert your COBRA coverage to an individual plan. COBRA provides important protection to those with pre-existing health conditions Healthy individuals may be able to purchase a plan on their own for a lot less money COBRA may be the right choice for some family members but not all. Review our extensive list of reasons why to elect COBRA. You should consider electing COBRA if you are pregnant, over 50, in poor health, or attached to your current doctor. You may not qualify for COBRA If you have pre-existing conditions and can't get individual health insurance, you can review these options, or enroll in your state high risk pool. We have also posted information on domestic partnerships and group health benefits.

If you are in good health, private medical insurance is usually much cheaper, but the benefits can also have more limitations. Healthy younger individuals may be able to purchase a plan on their own for less than $100 a month and want only a catastrophic hospitalization type plan.