Insurance Options for Those Who've Lost Coverage

Under COBRA, you are liable to pay the entire premium including the amount of the contribution made by your employer together with a maximum 2% administrative fee.

Normally, you will be covered for a maximum of 18 months, but coverage can be discontinued if you become entitled to Medicare, do not pay the premiums, your former employer drops health coverage or you join another health plan. A covered employee's spouse who would lose coverage due to a divorce may elect to receive continuation coverage under the plan for a maximum of 36 months.

You, your spouse and your dependents have the individual right to decide among various options for continuing health coverage. You may enroll in your spouse's plan while one of your dependents may elect COBRA coverage through your former employer's plan if, for instance, they have an illness at the time.

If there is no longer a health plan because the company went bankrupt or closed, there is no COBRA coverage available. If there is another plan offered by the company, you may be eligible to be covered under that plan. Collective bargaining agreements may provide for continued coverage for union members.

The Employee Benefits Security Administration, 866-444-3272, enforces and administers the rights and protections for health plan participants and their beneficiaries.

Private Health Plans

The Health Insurance Portability and Accountability Act of 1996 provides protection when you need to maintain health coverage between jobs or limit exclusions for pre-existing conditions under a new health plan.