COBRA
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is a law passed by Congress to give you the right to continue health insurance coverage after you become ineligible for your employer-provided coverage.
How does COBRA work?
Our COBRA services are administered in partnership with UnifyHR, another WEX company.
If you are a Qualified Beneficiary and lose insurance coverage due to a Qualifying COBRA Event you may have the right to continue your current coverage for a certain amount of time.
You will receive a COBRA Election Notice in the mail, usually within 30 days of experiencing your event. The notice will explain your COBRA rights, the period for which you are eligible for coverage, pricing, and deadlines for enrollment and submitting payments.
You may enroll online or using the paper form provided in your COBRA Election Notice. The login credentials for online enrollment are included in your Notice.
When you sign up for COBRA insurance coverage, you "make an election." Only people who experience a loss of coverage due to a Qualifying Event and were already covered by the plan Qualified Beneficiaries are eligible for COBRA coverage.
Who is a Qualified Beneficiary?
A qualified beneficiary is someone who was covered under the plan immediately prior to the qualifying event: you, your spouse and dependent children.
What is a Qualifying COBRA Event?
There are five qualifying COBRA events:
1. Death of the covered employee
2. Loss of eligibility for the plan through job termination (not due to gross misconduct) or reduction of hours
3. Divorce or legal separation
4. Becoming eligible for Medicare
5. A dependent child becomes ineligible for the coverage due to age or other plan requirements
How is this plan different from my employee coverage?
Your COBRA insurance coverage is the same coverage you enjoyed while you were employed. The only difference is that now you will pay the full cost of the premium instead of only the employee share. Remember that if employee coverage changes during open enrollment, your COBRA coverage will change too.
When your COBRA period expires
There are no extension periods for COBRA coverage except in certain circumstances covered by law (see page 2 of your election form). Your carrier may allow you to convert your policy to individual coverage but you will need to verify this option with them.