In general, COBRA allows employees, their spouses, and their children ("qualified beneficiaries") to continue their plan coverage for a limited time when they would otherwise lose coverage due to a particular event, such as divorce (or legal separation). A covered employee's spouse who would lose coverage due to a divorce may elect continuation coverage under the plan for a maximum of 36 months. A qualified beneficiary must notify the administrator of the healthcare plan about the divorce or legal separation with 60 days of the divorce or separation. After being notified of a divorce, the plan administrator must give notice, generally within 14 days, to the qualified beneficiary of the right to elect COBRA continuation coverage.
Divorced spouses should call the administrator of the employee's healthcare plan, or contact the U.S. Department of Labor's Employee Benefits Security Administration (EBSA) if you have questions about COBRA. Of course, if you're currently in or just beginning a divorce proceeding, your attorney should be able to help you with COBRA.
Qualified individuals may be required to pay the entire premium for coverage up to 102% of the cost to the plan. If you fail to make timely payment of the premiums, the employer can terminate your COBRA coverage.
Premiums may be increased by the plan, although premiums generally must be set in advance of each 12-month premium cycle.
In addition, you might be responsible for paying all costs related to deductibles that are part of the employer's healthcare plan.
You should get the same coverage and benefits that you had before the divorce (or any other qualifying event). But, if the employer makes changes to the healthcare plan that apply to all current employees, then the changes will apply to your COBRA coverage. Also, the employer and plan administrator have to let you make the same choices that are given to non-COBRA beneficiaries under the plan, such as during periods of open enrollment by the plan.
The Consolidated Omnibus Budget Reconciliation Act ("COBRA") gives workers who lose their health benefits the right to choose to continue group health benefits provided by the plan under certain circumstances.
COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.
If a qualified beneficiary waives COBRA coverage during the election period, he or she may revoke the waiver of coverage before the end of the election period. A beneficiary may then elect COBRA coverage. Then, the plan need only provide COBRA continuation coverage beginning on the date the waiver was revoked.
An initial notice must be given to covered employees and their spouses at the time coverage under the plan starts. The notice must inform them of their rights under COBRA and describe how the law works. The healthcare plan's summary plan description ("SPD") must also contain COBRA information.
When the plan administrator is notified that a qualifying event has happened, it must in turn notify each qualified beneficiary of the right to choose continuation coverage.
COBRA allows at least 60 days from the date the election notice is provided to inform the plan administrator that the qualified beneficiary wants to elect continuation coverage.
Under COBRA, the covered employee or a family member has the responsibility to inform the plan administrator of a divorce or legal separation (and some other "qualifying events" that are unrelated to divorces and separations).
If covered individuals change their martial status, or their spouses have changed addresses, they should notify the plan administrator.
The law generally covers group health plans maintained by employers with 20 or more employees in the prior year. It applies to plans in the private sector and those sponsored by state and local governments. COBRA provisions covering state and local government plans are administered by the Department of Health and Human Services.