| If you lose your job in Dallas, one of the many | | | | spouse or any of your children may enroll in COBRA |
| questions you’ll have is: “Will I lose my | | | | independent of your COBRA election decision. |
| health coverage, too?” If you’re an | | | | Even if you work at a small company (20 employees |
| employee at a company that has 20 or more | | | | or fewer) that is exempt from federal law, you might |
| employees, and you leave your group plan for reasons | | | | not be completely out of luck. Many states have |
| other than gross negligence, then you’ll be | | | | adopted their own laws, sometimes known as |
| offered COBRA continuation coverage. | | | | "mini-COBRA," that often grant broader rights in |
| This federal law, known as COBRA (Consolidated | | | | determining coverage eligibility. |
| Omnibus Budget Reconciliation Act of 1985), fills that | | | | If your employer has more than 20 workers, but |
| important gap for health insurance plans for qualified | | | | doesn't offer health coverage, or offers coverage only |
| workers, their spouses, and their dependent children so | | | | to certain groups of employees and you're not one of |
| their health insurance does not have to stop when | | | | them, you won't be eligible for COBRA even if one of |
| they leave their job. | | | | the qualifying events occurs. That ineligibility will include |
| Under COBRA, if you voluntarily resign or are | | | | your spouse or children. |
| terminated for any reason other than "gross | | | | Additionally, if your former employer changes its health |
| misconduct," you are guaranteed the right to continue | | | | insurance plan for its current employees, you are |
| your former employer’s group plan for individual | | | | entitled to receive benefits under the new plan, |
| or family health insurance for up to 18 months at your | | | | although the benefits may change. If your employer |
| own expense. In most cases, spouses and dependent | | | | switches plans, you won't be able to keep the old plan. |
| children are also eligible for COBRA coverage, for | | | | And if your former employer offers separate health |
| sometimes up to three years. However, individual plans | | | | insurance plans (dental, medical, and vision, for |
| — plans you purchase on your own, rather than | | | | example), you and each of your qualified family |
| through work or an association — are not subject | | | | members may choose to continue any combination |
| to COBRA laws, and once you lose that coverage, | | | | under COBRA. However, if your employer sponsors |
| you won't be able to get an extension under COBRA. | | | | one plan with multiple health insurance benefits, you |
| If offered, should you elect the COBRA continuation | | | | must each elect all the benefits or nothing. |
| coverage option? If you or your family has major | | | | But eligibility isn't the only issue to consider when it |
| health issues, then yes. If you and your family are | | | | comes to COBRA. Cost is a major consideration, too. |
| relatively healthy, then it’s wise to compare | | | | If you have no pre-existing conditions and decide |
| individual health insurance plans, as individual rates are | | | | against COBRA, you should consider buying individual |
| likely to be half the cost of a comparable COBRA | | | | insurance or even a short-term major medical policy to |
| group health insurance premium or even less. | | | | tide you over until you land a new job with health |
| Group health coverage for COBRA participants is | | | | benefits. |
| usually more expensive than health coverage for | | | | The following health plans are subject to COBRA: |
| active employees because the employer usually pays | | | | · Medical plans. |
| a part of the premium for active employees, while | | | | · Dental, vision, and prescription drug plans. |
| COBRA participants generally pay the entire premium | | | | · Drug and alcohol treatment programs. |
| themselves. | | | | · Employee Assistance Plans, known as EAPs, |
| In addition, keep in mind that one major difference | | | | which provide medical care such as counseling or |
| between individual and group health plans is maternity | | | | psychological treatment. |
| coverage. With individual health plans, that coverage, if | | | | · On-site health care, including discount or free |
| offered at all, is extra, while most group plans include | | | | medical services. |
| maternity coverage. So, if you need maternity | | | | · Section 125 spending arrangements, also |
| coverage, you should compare COBRA rates with the | | | | known as cafeteria plans, under certain circumstances. |
| rates offered through an individual plan with maternity | | | | The following benefits are not subject to COBRA: |
| coverage. | | | | · Wellness programs. |
| If you forgo COBRA, any of your qualified family | | | | · Life, disability, and long term care insurance |
| members may elect to continue their health insurance | | | | plans, and medical savings accounts. |
| benefits under your former employer's plan. And your | | | | · EAPs that do not provide medical care. |