COBRA Coverage: Keep Your Benefits When Life Changes
Life changes. Jobs end. Hours shift. Relationships evolve. And in the middle of it all, your health coverage is too important to lose. That’s where COBRA comes in.
What is COBRA?
The Consolidated Omnibus Budget Reconciliation Act (COBRA), passed in 1986, ensures that employees and their dependents can continue their group health coverage—even after certain life events that might otherwise terminate benefits. COBRA covers Medical, Dental, Vision, and Medical Reimbursement Accounts.
Who Needs to Offer COBRA?
If an employer had at least 20 full-time and part-time employees for 50% of business days in the prior year, they are required by law to provide COBRA coverage. This means they must notify eligible employees and dependents about their rights and options when a qualifying event occurs.
What Counts as a Qualifying Event?
COBRA protects you in the following situations:
- Termination of employment (voluntary or involuntary)
- Reduction in work hours
- Employee’s death
- Divorce or legal separation (in certain states)
- Medicare entitlement
- Changes in dependent status
Why It Matters
Missing COBRA deadlines can be costly—for both employees and employers. Lawsuits for noncompliance can run into thousands or even millions of dollars. For employees, COBRA ensures uninterrupted access to essential health benefits while you transition through life’s changes.
Key Takeaways:
- COBRA is your safety net for health coverage during life transitions.
- Employers must provide detailed notifications and explain conversion privileges.
- Coverage can help bridge gaps until a new employer plan or other health coverage kicks in.
With COBRA, you don’t have to gamble with your healthcare just because life circumstances change. It gives you the time and coverage to make decisions without losing your benefits.