Health & Benefits

What is COBRA?

The Consolidated Omnibus Budget Reconciliation Act, also known as COBRA, is a federal law that gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan. This additional coverage is allowed for limited periods of time under certain circumstances. Such circumstances include: 

• Voluntary or involuntary job loss,
• Reduction in the hours worked,
• Transition between jobs,
• Death,
• Divorce, and
• Other life events.

How can COBRA help me?

Generally, your coverage under COBRA will be the same coverage you had while you were an employee. This is helpful if you would like to continue to see your same doctors and receive the same health plan benefits. Your dependents (i.e., spouse, former spouse, or children) are also eligible for COBRA coverage, even if you (the former employee) do not sign up for COBRA coverage.

Getting Started On COBRA Insurance

After you leave your job or your work insurance ends, most of the time your employer has 44 days to notify you of your option to choose COBRA to keep your medical coverage. This opens a special open enrollment period for you.

You have 60 days to respond to the election notice and apply for COBRA to continue the same medical policy you are or were on. 

Your initial premium payment must be made within 45 days of electing coverage. After you make the initial premium payment, subsequent premium payments are considered on time if they are made by the due date or within a 30-day grace period A period of time when a debtor is not required to make payments on a debt after the due date. Usually premiums Money that must be paid every month, such as for health insurance are paid on a monthly basis, depending on the health plan. 

How Long Does COBRA Last?

You can stay on COBRA insurance for 18 months or 36 months, depending on your circumstances.

Is COBRA right for me?

The out-of-pocket cost for COBRA insurance is usually more expensive than what you paid while you were an active employee. If you are looking to save money, consider a temporary health plan.

Visit Get Covered Illinois to learn more about healthcare coverage options. Medicaid is available for low-income people and families.