What is COBRA?

There are a few ways to navigate the loss of job-based health insurance. If you get fired or quit and were enrolled in health insurance through your employer, there are various options for you to acquire new health insurance.

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The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows individuals the option to continue to be covered by their previous employer’s health insurance plan at a higher premium if they lose employment or have their hours reduced. This means that you are able to keep the same health coverage you had while you were still employed. However, you would not qualify is if you lost your job due to misconduct. In addition, if your employer closes or stops offering health insurance to its employees, you will not be able to apply for COBRA. You may also be eligible for COBRA if you separate or get divorced from a partner or they pass away and you were being covered under their employment-based insurance.

 

It is important to note that you must enroll in COBRA within 60 days of the qualifying event. If you enroll in COBRA and later become eligible for Medicaid, you will not be able to continue with COBRA coverage and must instead enroll in Medicaid. However, if you were eligible for Medicaid at the time when you experienced the qualifying event, you are able to stay on COBRA for the full-time period and switch to Medicaid at any time.

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Coverage through COBRA is considered minimum essential coverage. There is also unemployment insurance, which is separate from health insurance. It is important to note that unemployment insurance is not health insurance. You will receive $40-$450 per week to help cover any of your basic needs. You can use this to pay for health care services but you will have to pay the full cost yourself. As such, you should still enroll in a health insurance plan.

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