COBRA Insurance

OK, you have left your job and are trying to decide what to do about COBRA. In fact, you don't really know what COBRA does. Sound familiar? Don’t worry, you have options. Call someone to help or go online and get some answers. Here are a few quick thoughts to help your cause…

1. If your employer has 20 or more employees, and you have been covered under the group plan for at least 3 months, you are probably eligible for COBRA. (There are other situations where you may not be eligible. Involuntary termination with cause is one of those.)


2. You will probably receive COBRA instructions from your employer within a couple of weeks


3. You have 60 days after qualifying for COBRA coverage to decide if you want to enroll


4. WHAT DOES COBRA COVER? It covers you the same way your policy worked through the employer plan.


5. HOW MUCH DOES COBRA COST? What was your prior cost and what was your employer’s cost? You pay the total cost of your healthcare plus 2%. If you were paying $150 a month and your employer was paying 50% of your coverage, so another $150, your total was $300. Including the 2% that would be $306.


6. CAN I PURCHASE AN INDIVIDUAL PLAN INSTEAD OF SIGNING UP FOR COBRA? Yes you can. It will probably be less expensive but you may get a little less coverage.

More at the follow link to the Texas Department of Insurance:

http://www.tdi.texas.gov/pubs/consumer/cb005.html