Many people know that COBRA health insurance is an option if you are laid off from your job or quit your job, but what if you were fired? Well in most cases that probably depends on what you were fired for. Under the federal COBRA insurance laws, employees are entitled to COBRA insurance under the qualifying event if they lost their job for any reason that isn’t gross misconduct. So what is gross misconduct. According to the courts, gross misconduct is : Acts of gross misconduct are intentional, wanton, willful, deliberate, reckless, or in deliberate indifference to an employer’s interest. They do not have to be criminal acts and can actually happen in the workplace or away from the workplace. Some examples from court cases that have involved gross misconduct and COBRA insurance are:
- Hitting another employee on the job
- Misappropriating funds
- Sexual misconduct
- Repeatedly not performing the job as instructed
- Theft of any kind
With that said, according to the Department of Labor’s website, “Generally, it can be assumed that being fired for most ordinary reasons, such as excessive absences or generally poor performance, does not amount to “gross misconduct.” ”
If you are fired and your employer is not entitling you to COBRA insurance due to gross misconduct, you should receive a Notice of Unavailability of COBRA Coverage that explains why you are not eligible. You will be able to appeal that notice if you do not agree with the terms that it lays out.
Signing up for and enrolling in COBRA insurance allows you to keep the exact same health insurance plan you had with your employer at full cost. Since the plan is the same, in most cases you can add a dependent, like a child, when there is a qualifying event. So if you adopt a child, have a child, or even get married to someone with a child, those children can be added to your COBRA plan. However, if you previously has a child and you didn’t include them on your health insurance plan it may be difficult to add them to COBRA insurance plans. You will have to check with your health insurance provider to find out.
A constant question we receive in our inbox is whether or not COBRA insurance extends to life insurance policies. Unfortunately, the federal COBRA insurance law does not extend to life insurance policies which means that you must sign up for your own life insurance policy after losing or quitting your job. Having life insurance is important and ensure that your family will be protected if anything happens to you.
Many people think that COBRA insurance is only for someone who recently lost or quit their job, however COBRA health insurance actually extends to a much larger group of people who lost their health insurance coverage for a myriad of reasons. One of those reasons under the COBRA insurance laws is legal divorce or separation.
We have received lots of questions about how COBRA insurance and disability work together. Basically there are a few key factors that are important to know when thinking about COBRA insurance and disability. First, under HIPAA (the Health Insurance Portability and Accountability Act), there is a possibility to extend COBRA insurance benefits for an additional 11 months if you become disabled. However, this disability has to happen within the first 60 days of COBRA insurance coverage. This will increase the total COBRA term length to 29 months. Additionally, under HIPAA, both you and anyone else covered on your COBRA health insurance plan can extend coverage for that 11 months. That means your spouse, children, and any other dependents will also be able to stay on COBRA for 29 months.
Quitting your job and deciding to open your own small business can be a very exciting time for many. Although many people who follow this path can elect to have COBRA health insurance for the first 18 months, many are faced with a difficult health insurance decision when COBRA ends. If you are someone in this position, follow these 5 tips to choose the best health insurance for you.
A reader recently wrote to us wondering what he should do when his COBRA insurance runs out. Him and his wife have been on COBRA insurance for the last 17 months and have about 30 days to make a plan for when their insurance stops. They are both in their fifties and they have a daughter for is 24 who is also on their health insurance plan with COBRA.
Due to the economic recession and the large amount of people who found themselves unemployed, the government passed laws to create a COBRA insurance subsidy for people who needed COBRA insurance but were not able to afford the expensive premium. This COBRA insurance subsidy paid 65% of the premium for anyone on COBRA who was unemployed and met certain conditions. The government renewed this subsidy three times to extend its length and continue to assist people.
Although for most people COBRA insurance coverage will only last 18 months, there are some situations where COBRA health insurance can actually extend beyond the typical 18 months. Knowing what these circumstances are can save you and your family from having to switch insurers or experiencing a lapse in health insurance coverage.
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