COBRA (the Consolidated Omnibus Budget Reconciliation Act) is a federal law that allows you and any of your immediate family members to stay on an employer-sponsored health plan under certain circumstances.
For example:
- You lose or quit your job.
- You divorce the employee.
- The employee dies.
- You are no longer covered as a dependent due to your age.
For a detailed list of qualifying events, go to the U.S. Dept. of Labor's website (www.dol.gov).
COBRA doesn't apply to everyone
- COBRA applies only to employers who had 20 or more workers in the previous year.
- State and local governments fall under COBRA, but federal plans and certain religious organizations do not. Federal employees have some similar rights under another law. Ask your human resource department for more information.
- COBRA generally does not apply to employees who are terminated for “gross misconduct.”
Coverage can be expensive
- Employees who select COBRA must pay the entire premium including the portion previously paid by their employer, plus a 2% administrative fee.
- Instead of COBRA, see if you qualify to buy a health plan through the Washington Healthplanfinder (www.wahealthplanfinder.org) and receive a subsidy to help pay your insurance premiums.
- If you enroll in COBRA and later on decide to switch to a health plan through the Washington Healthplanfinder, you may have to wait until the next open enrollment period.
Where to go for more help
| General COBRA questions | COBRA laws and specific questions | Public sector employees with COBRA questions |
|---|---|---|
Call our Insurance Consumer Hotline | U.S. Dept. of Labor, Employee Benefits Security Administration, Seattle District Office 300 Fifth Ave., Ste. 1110 | Centers for Medicare & Medicaid Services (CMS) 7500 Security Blvd. |