What Is COBRA?
COBRA grants the right of a terminated employee, or an employee who has moved to part-time, to remain covered under their employer’s company health plan.
COBRA refers to the Consolidated Omnibus Benefits Reconciliation Act and it grants the right of a terminated employee, or an employee who has moved to part-time, to remain covered under their employer’s company health plan.
When employees enroll in COBRA, they are continuing the same coverage as their group plan, including:
- Benefits, choices, and services
- Copayments, deductibles, and coverage limits
- Rules for filing claims and appealing denied claims
- Right to change coverage options during open enrollment
What Changes
However, when employees enroll under COBRA, they become responsible for paying the entire premium (plus administration fee), unless the employer optionally elects to pay the premium for one or more months.
