COBRA (individuals and families)                                                  1-866-444-3272

U.S. Department of Labor's Employee Benefits Security Administration

www.dol.gov/ebsa or www.dol.gov/COBRA

COBRA is the extension of health care insurance offered by an employer to workers who are now on temporary or permanent layoff.

Note: If you receive a letter about COBRA please read it carefully and call your employer to ask about the options available to you.

The COBRA subsidy program eligibility ended May 31, 2010 and was not extended with the unemployment bill passed on July 23, 2010. 

    GENERAL COBRA SUBSIDY INFORMATION

• Eligible individuals pay only 35% of their COBRA premiums and the remaining 65% is reimbursed to the employer through a payroll tax credit.  The coverage lasts 15 months.

• To qualify, the company must have 20 employees; worker must have been a part of the group health plan and the employer must continue to maintain a health plan.

• Subsidy is for workers who lost health insurance between September 1, 2008 and May 31, 2010.

• Workers have 60 days to respond to letters from their employer or health plan administrator about COBRA.

• COBRA premiums will vary because it is a continuation of each company's health plan.

• COBRA can apply to those who lost their insurance due to reduced hours.

• Those who are eligible for other group health coverage (such as a spouse's plan) or Medicare are not eligible for the premium reduction.

• If a worker declines COBRA, other family members who are COBRA eligible, may still elect to have COBRA.

•  COBRA eligible individuals may be able to purchase individual health coverage on a guaranteed available basis with no exclusion period for preexisting medical conditions when their COBRA ends. For more information about obtaining individual health coverage contact your state's department of insurance, preferably before your COBRA coverage ends. Also, you can contact Centers for Medicaid and Medicare Services (CMS) at 1-877-267-2323 extension 61565.