I Lost my Job, does my Family still have Health Coverage?

Answer:
If the company you previously worked for had at least

20 employees, you may be eligible to keep your existing health insurance under COBRA (Consolidated Omnibus Budget Reconciliation Act) for a limited amount of time.

This doesn’t mean your coverage will continue to be paid for by your previous employer though. You will be responsible for paying the full premium for your health coverage plus two percent which helps offset the employer’s administrative costs. For example, if your employer used to pay for half of your medical insurance as a benefit, you will now have to pay the entire premium plus a small administrative fee.

Under COBRA, if you meet the eligibility requirements, you are allowed to participate in the employer’s health insurance plan for up to 18 months though under special circumstances this coverage may be extended.

Eligibility for COBRA extends to spouses and dependants as well as the covered employee. For example, if death or divorce occurs, the spouse can opt to continue health insurance through COBRA.

While paying the full cost of health insurance premiums and the administrative fee will be expensive, extending your coverage through COBRA could be less expensive than buying an individual health insurance policy.


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