After termination, how does one apply for COBRA insurance?

Question

After termination, how does one apply for COBRA insurance?

Answer 1

Usually, under state laws, your employer has the next 60 days after termination, to provide you with details of how you can apply for continued coverage of health insurance under COBRA.

Beware:  COBRA is very expensive.  When I was laid-off from a major computer manufacturer in 2001, I was offered COBRA at almost $425 per month.  That's an outrageous price to pay, unless you're getting more than that as a benefit for prescriptions on a regular basis.

Instead, I subscribed to a "Short-term Health Coverage" plan offered by my State Farm Insurance Agent.  They got me into a short-term plan that spanned my layoff time period for about $98 per month at the top end of coverage.  I could have selected the coverage at $50 per month, if I had wanted to, but I wanted greater coverage.

I hope this helped.

Answer 2

Usually, you are already signed up for COBRA insurance while you are working. If you're positive you're not, then talk to your employer. Remeber though, you're only covered for so long.

Answer 3

As long as your company has at least 20 full time employees,and you were not terminated due to gross misconduct, you should be eligible for COBRA. The employer has 30 days to notify your insurance of your termination. Then the insurance carrier has 14 days to send you the COBRA paperwork and you will have 60 days to elect or waive the coverage. The premium payment must be sent within 45 days of the election. Since the employer is not longer contributing to the premium, you will have to pay the entire amount plus 2% (or so) for administrative costs.

If it has been a few weeks since you were terminated, you could contact the insurance to see if they have been notified yet.

Answer 4

You should be getting information in the mail by your former employer. If not, contact them and ask about it!

Answer 5

Gary, $425 outrageous price to pay?

guess what? that's about middle of the road for a single subscriber on a group policy these days. you think its outrageous because most people have no idea and completely take for granted what their employer pays for their health insurance.

a two person contract from your former employer is probably in the $700's and a full family is probably well over 1k per month. but don't worry, you and i will be paying that soon, cost wont go down but who cares, the government is the largest TPA out there.

Answer 6

Your employer will, or should, send you an envelope with all the paperwork you will need to sign up. I believe some of it will even be filled in already.