The law generally covers group health plans maintained by employers with 20 or more employees. It applies to plans sponsored by private companies, corporations, partnerships, and state and local governments. COBRA does not cover federal government and certain church organization plans.
If you get your health insurance through your spouse's job, you normally lose that coverage when you divorce. But if your spouse works for an employer with at least 20 employees, COBRA could allow you to keep your group health coverage for another 36 months after your divorce.
You must tell the health plan administrator about the change in your marital status within 60 days of your divorce. The administrator then has 14 days to tell you how to make an election to continue your health coverage under COBRA. You then have 60 days to make the election.
Talk to your divorce attorney about the best way for you to maintain health insurance coverage after your divorce. You can also contact the US Department of Labor's Employee Benefits Security Administration (EBSA) if you have questions about COBRA.
You should get the same coverage and benefits that you had before the divorce. But, if the employer makes changes to the healthcare plan that apply to all current employees, those changes will also apply to your COBRA coverage.
The employer and plan administrator must let you make the same choices that are given to non-COBRA beneficiaries under the plan. For example, you'd have the same benefit choices that are given to other participants during periods of open enrollment by the plan.
You may be required to pay the entire premium for your COBRA coverage, including any portion that was paid by the employer. You can also be charged a 2 percent administration fee. Your total cost could add up to 102 percent of the group plan rate.
In addition, you might be responsible for paying all deductibles that are part of the employer's healthcare plan.
If you fail to make timely premium payments, the employer can terminate your COBRA coverage.
You have 60 days to choose whether to continue your insurance coverage under COBRA. If you first decline COBRA coverage, you can change your mind and still elect COBRA coverage within that 60-day period.
You lose your right to COBRA coverage if you fail to submit your election form before the end of that 60 days.
The employer must give you and your spouse an initial COBRA notice at the time your coverage starts under the health plan. The notice must tell you about your COBRA rights and explain how the law works. The insurance summary plan description (SPD) must also contain COBRA information.
Under COBRA, the covered employee or a family member has the responsibility to inform the plan administrator of a divorce or legal separation (or other event that affects coverage).
Once the plan administrator is notified about your divorce, or other qualifying event, it has 14 days to let you know about your right to elect a continuation of coverage under COBRA.
You then have at least 60 days from the date the election notice is provided to inform the plan administrator that you want to continue coverage under COBRA.