The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows for a continuation of health coverage when it would otherwise end because of a qualifying life event. If your plan is subject to COBRA, the plan will offer COBRA continuation coverage to qualified beneficiaries after notification that the qualifying event has occurred. You will receive this notification through a COBRA election notice, which will have all the relevant information for electing COBRA. More information can be found here.
Does COBRA apply to my plan?
Federal COBRA applies to group health plans of private-sector employers, and of state and local governments, that had 20 or more employees on more than half of their typical business days in the previous calendar year. Part-time employees count as a fraction of an employee, based on hours worked.
Plans exempt from COBRA
Plans where every participating employer is below the 20-employee threshold
Church plans, including plans of certain church-related organizations
Federal government plans
Plans of the District of Columbia or U.S. territory governments
When your plan’s status is determined
COBRA applies based on whether your employer’s plan was subject to it on the date your qualifying event happened, such as the day your employment ended.
If your plan was subject to COBRA when your qualifying event occurred, you keep your COBRA rights even if your employer later drops below 20 employees.
If your plan was exempt when your qualifying event occurred, COBRA is not available, even if your employer later grows to 20 or more employees.
If your employer is exempt
Federal law does not require an exempt employer to offer COBRA, but an exempt employer can still choose to offer continuation coverage. To find out whether yours does, check your Summary Plan Description (SPD) or ask your employer.
If your plan is subject to COBRA, you can elect COBRA when you lose coverage because of a qualifying event. The next section explains which events count.
Qualifying Events
If you’re an employee
You’ll become a qualified beneficiary of COBRA continuation coverage if you lose your coverage under the plan because of the following qualifying events:
Your hours of employment are reduced, or
Your employment ends for any reason other than your gross misconduct.
If you’re a dependent spouse
You’ll become a qualified beneficiary of COBRA continuation coverage if you lose your coverage under the plan because of the following qualifying events:
Your spouse dies
Your spouse’s hours of employment are reduced
Your spouse’s employment ends for any reason other than their gross misconduct
Your spouse becomes entitled to Medicare benefits
You become divorced or legally separated from your spouse
If you’re a dependent child
You will become qualified beneficiaries of COBRA continuation coverage if they lose their coverage under the plan because of the following qualifying events:
The parent-employee dies
The parent-employee’s hours of employment are reduced
The parent-employee’s employment ends for any reason other than their gross misconduct
The parent-employee becomes entitled to Medicare benefits
The parents become divorced or legally separated
The child stops being eligible for coverage under the plan as a "dependent child”