Many of the questions we receive on a daily basis are regarding the current COBRA health insurance laws and how they affect people who have been laid off, quit their job, or retired from their job. The COBRA insurance laws have actually not changed much since they were passed in 1986 and still serve the same purpose to protect individuals and families from suddenly being without health insurance.

Under the COBRA health insurance laws people who lose, quit, or retire from their job without the presence of gross misconduct AND who meet certain government requirements can elect to continue the exact same health insurance plan with COBRA. This benefit extends to their family members as well. However the main difficulty for most people with the COBRA laws are that you are required to pay the entire cost of the health insurance plan. Since most employers pay anywhere between 50%-90% of the cost, this is a significant expense especially for someone who has just lost their job.

The three conditions that the government sets out in the law are known as qualifying plan, qualifying event, and qualifying beneficiaries. Qualifying plan refers to the type of health insurance plan the person had when they had a job. In most cases any plan that covered 20 full time employees will be eligible for federal COBRA laws. The second requirement, qualifying event, is how the person lost their insurance coverage. For employees this can be quitting, retiring, or losing their job without gross misconduct. For family members this could be that the covered employee lost, quit, or retired from their job, due to a legal separation or divorce, or because a dependent loses their dependent status. The final requirement, qualifying beneficiaries, is who else is eligible for coverage. In most cases anyone who was covered under the health plan can continued to be covered with COBRA insurance laws.