COBRA gives employees the right to keep the group health insurance that they would otherwise lose after they:
- Reduce their work hours
- Quit their jobs
- Lose their jobs
The employee would be responsible for the full premiums.
Note: There are certain COBRA eligibility and company size requirements that vary by state law. Additionally, if a company decides cancels the entire group policy, terminated employees will not be able to enroll in COBRA (since the policy is cancelled) and will need to enroll in individual insurance.
If you are an employer:
When you terminate an employee in your dashboard, you have the option to send an email with COBRA information. Their insurance with the company will end on the last day of the month they are terminated. They will also receive continuation paperwork in the mail directly from the insurance carrier.
If you would like to send the coverage continuation to the terminated employee, check the box that says "Send Email":
If you are an employee:
Employees have 60 days to enroll in COBRA coverage. For most people, it is best to wait and see if they really need the COBRA coverage before they choose to enroll. If you get coverage somewhere else before the 60 days is up, and you do not end up needing to see the doctor in those 60 days, then you can save yourself quite a bit of money by not enrolling in COBRA.
If you do need to use the coverage within the 60 days, you can always retroactively enroll as long as you send in the application within the first 60 days. This means that if you are in an accident on day 45 and need to go to the hospital, you can enroll in COBRA on day 46. Even if you enrolled on day 46 (after the accident), the coverage would start from day 1, meaning you would be covered for the accident.
If you are receiving ongoing treatment for a chronic illness however, it could make sense for you to enroll in COBRA right away. You do have the ability however, to look at other individual options including coverage available on healthcare.gov through the Affordable Care Act.
We generally recommend the following websites for people who are looking into alternate plans as an individual:
This way, you have the option to select a plan that works best for you in terms of coverage and monthly cost, rather than being locked into the plan that you had through your employer. Please note you typically have 30 days after your employer plan ends to sign up for individual coverage. If you are unable to find any suitable options there you can always enroll on this COBRA plan.
There is no penalty for insurance if you are enrolled for at least 10 months out of the year. Thus, if you go 2 months without insurance, you will not be fined come tax season.
Please reach out to SimplyInsured's Customer Care Team to confirm if you are eligible for COBRA and next steps for enrollment at the link below: