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
• 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, your employer has 45 days to notify you of your option of choosing COBRA to keep your medical coverage. This opens a special open enrollment period for you.

Usually, 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. However, because the Biden Administration extended the country’s public health emergency status through October 13, 2022, employees who qualify for COBRA have the end of their 60-day election period paused. Their election period is paused until whichever comes first, either one year from the date they were first eligible for relief, or 60 days after the announced end of the Covid-19 National Emergency.

You also have up to one year and 105 days to pay the initial premium, depending on when you elect coverage. You then have up to 1 year and 30 days to pay subsequent COBRA premiums.

Unpaid premiums during the pandemic cannot be used to deny coverage. Those premiums must still be paid after the Covid-19 national emergency is over.

How Long Does COBRA Last?

You may 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 roughly $400 – 800/month, per person to continue on the employer’s group health plan. 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.