I Had Health Insurance From My Employer And Left My Job, What Happens?

By Robert Fredricks Posted in Health Insurance News



One of the biggest benefits of being employed by a good company is the ability to buy into their group health insurance plans at much lower prices then you would pay for an individual policy. A common concern for many people is what to do about health insurance coverage if they were covered by their employers group plan but left their job. This is why the US government set up the federal Consolidated Omnibus Budget Reconciliation Act of 1986. This act is commonly known as COBRA.  This act enables you to stay covered under your formers employer’s group health plan for up to 18 months after leaving the company. Because you are not employed by the company any longer, they will not help you pay any of the insurance premium. This means that in order to maintain coverage you will have to pay significantly more then if you were employed. Also, companies are able to charge an additional 2 percent administrative fee.

COBRA Health Insurance Can Be Very Costly

Although COBRA allows you and your family to maintain health insurance coverage after you leave a job, the cost of paying the entire insurance premium can be  more then many can afford. In fact, of all of the individuals who qualify for health insurance under COBRA, only around 25 percent take part in it because of the high cost. Because of this, the government recently passed a stimulus plan that will cover 65 percent of the cost of COBRA health insurance plans for the first nine months.

The Cobra Program Does Not Apply To All Companies

It is typically a requirement that companies with more than 20 employees partake in the COBRA insurance programs, buy there are still options for those who were employed by smaller companies. Many states have passed laws that are similar to COBRA that allow former employees of small companies to continue their health coverage after they leave their job. Also, state government employees are covered under these laws.

Related posts:

  1. What Are Employer Obligations When Offering Health Insurance?
  2. What Happens To Your Health Insurance If You Get Laid Off?
  3. How Do Unemployed People Find Health Insurance?
  4. What Does COBRA Insurance Mean?
  5. How Does Temporary Medical Health Insurance Coverage Work?






Leave a Reply