The Consolidated Omnibus Budget Reconciliation Act (COBRA) 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 for limited periods of time under certain circumstances such as voluntary or involuntary job loss, reduction in the hours worked, transition between jobs, death, divorce, and other life events. Qualified individuals may be required to pay the entire premium for coverage up to 102 percent of the cost to the plan.
COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end. However, in Connecticut, Public Act 97-268 mirrors federal law, with the exception of giving disabled individuals continuation benefits for 29 months, instead of the 36 months.
COBRA outlines how employees and family members may elect continuation coverage. It also requires employers and plans to provide notice.
Click on this link to be redirected to the Department of Labor Frequently Asked COBRA Questions.
If you would like to see if and Individual Health Plan can save your money on premiums, while providing you with proper medical insurance for your health care needs, click here.
