COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act of 1985, is a federal law that requires employers with 20 or more employees to offer “continuation coverage” for group health plans. This allows employees, their spouses, and dependent children to keep their health insurance for a limited time after it would normally end due to specific life events.

How COBRA Works

• Continuation of Benefits: The coverage provided under COBRA must be identical to the “core” or basic benefits you received while employed.
• Fees: Unlike employer-sponsored insurance where the company often pays a portion of the premium, you are typically responsible for paying the full cost of the coverage yourself.
• Duration: Coverage generally lasts between 18 and 36 months, depending on the nature of the qualifying event.

Qualifying Events

You may be eligible for COBRA if you lose your health coverage due to any of the following:

For Employees	For Spouses	For Dependent Children
Voluntary or involuntary job loss (except for gross misconduct)	Job loss of the covered employee	All events listed for spouses
Reduction in work hours	Reduction in employee’s work hours	Loss of “dependent child” status under plan rules
	Employee becomes entitled to Medicare
	Divorce or legal separation
	Death of the covered employee

How to Apply

1. Notify Employer: You or a family member must inform the employer within 60 days of a qualifying event.
2. Election Period: Once the employer notifies you of your rights, you have 60 days to choose to elect COBRA coverage.
3. Risk of Loss: If you do not choose COBRA within this 60-day window, your medical coverage will end.

Important Note on Medicare

If you are transitioning to Medicare, it is important to know that COBRA is not considered coverage based on current, active employment. This means that even if you have COBRA, you must generally enroll in Medicare Part B within eight months of your actual employment ending to avoid late enrollment penalties. Furthermore, you are not entitled to a special enrollment period for Medicare once your COBRA coverage expires.

For More Information

• Local Assistance: Union County residents can contact the Council on Aging in Union County at 704-292-1797 for help with Medicare and SHIIP counseling.
• State Resources: Call the Seniors’ Health Insurance Information Program (SHIIP) at 1-855-408-1212 or visit ncshiip.com.
• Federal Resources: Contact the Department of Labor’s Employee Benefits Security Administration (EBSA) at 866-444-3272 or visit askebsa.dol.gov.