How to Get Help With Cobra Insurance

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COBRA is the Consolidated Omnibus Budget Reconciliation Act, which allows individuals to continue on their former employer's group health insurance. Individuals who choose to elect COBRA coverage will need to pay the full premium each month. However, you can get help with COBRA insurance if you qualify for the COBRA subsidy provided by the federal government's stimulus package.

Apply for COBRA continuation coverage if you voluntarily quit your job or have been terminated from your current employer.

Determine if you qualify for the COBRA subsidy. The COBRA subsidy is available to individuals who have been separated from the jobs between Sept. 1, 2008 through Dec. 31, 2009.

Review the paperwork that is sent from your former employer or the COBRA plan administrator. If you qualify for the COBRA subsidy there should be information included with the packet.

Contact your COBRA plan administrator if you believe you qualify for the subsidy but did not receive any information.

Mail the reduced payment for the coverage to your COBRA plan administrator. Your payment, if you qualify for the subsidy, will be 35 percent of the premium and will last for nine months.

Tips

  • The COBRA subsidy is a result of the passage of the American Recovery and Reinvestment Act or ARRA.

    The COBRA subsidy is only available to individuals who were involuntarily terminated.

Warnings

  • If you quit your job or if your employer has gone out of business the subsidy will not be available.