Overview

What Is COBRA?
COBRA (the Consolidated Omnibus Budget Reconciliation Act of 1985) is a federal regulation requiring certain employers to allow eligible employees and eligible family members to continue group health care coverage when specific events occur that would normally result in loss of coverage.

Why Might You Need COBRA?
There are numerous benefits to having COBRA coverage, including:

• Group rate insurance — receive more affordable health insurance through a group rate negotiated by your former employer. Because health insurance coverage is offered to you at a group rate, the premium may cost less than if you purchased the same coverage individually. See also “How is COBRA different from my regular health insurance?”
  
  
• No lapse in coverage — you have no lapse in health insurance coverage, and this is especially important if you have dependents. Even if you elect COBRA for a transition period until your new employer’s health insurance coverage becomes effective, you’re covered in the event of an accident or illness.
  
  
• No new pre-existing condition clause — reduces the risks of being denied because of pre-existing conditions. If you’ve had coverage for 12 consecutive months (or, in some cases, 18 months) without a lapse in coverage, then your COBRA coverage counts as creditable coverage, which may reduce the impact of a new employer’s pre-existing condition clause.
  
  
• Same provider network — you are allowed to continue using the same provider network (i.e., doctors, hospitals and pharmacies) because coverage is unchanged. Additionally, if you’ve already met your deductible for the year, you don’t have to start over until the beginning of the next plan year.

Already enrolled in COBRA? Log into your account.