COBRA

The Consolidated Omnibus Budget Reconciliation ACT of 1985 (COBRA) extends group coverage, temporarily, and is paid for by the employee. The premium rate is the same rate the employer paid, plus a small administration fee of approximately 3%-5%. The federal COBRA law applies to employers with 20 or more employees.

WHO QUALIFIES? Those that lose their job (whether laid off or fired) is the most common situation when COBRA is elected. Other situations such as loss of hours, or dependents losing coverage due to divorce, death, or retirement of the employee also qualify.
Many states, including Arizona, have passed “mini-COBRA” laws for employer groups with less than 20 employees.
If the employer group plan changes coverage, COBRA coverage changes as well. If the employer goes out of business, COBRA ends.

Arizona short term health insurance policies (up to three years) may be a considerably less costly option for those that qualify.