All right; you
have a good idea of what COBRA is and how it works now. The next question is,
“how long can I keep this coverage? What if I’m out of work for a long time?”
Like the Qualifying Events, it depends on what kind of Qualified Beneficiary
you are; but it also depends on the Qualifying Event.
What
does COBRA cost?
Brace yourself;
you may not be ready for this. COBRA benefits can be continued for 102% of the
cost of the group coverage. The 2% is an administrative fee on top of the
premium. Before you fish out your pay stub and figure out what 2% is,
understand that you are most likely not paying 100% of the premium now, but
rather only your portion. Your employer
is also paying a portion, which is sometimes 3 to 4 times (or more) what you
pay. So 102% means what you pay plus what your employer pays plus two
percent. It is not uncommon for an
individual with family coverage to go from paying $300 a month to nearly a
thousand.
What
benefits are covered?
Like most
answers to health-benefit questions, this depends. The short answer is,
“whatever your employer was offering to you as a full-time employee,” mainly
medical (doctor visits), hospitalization (usually rolled into the same health
plan as the medical), prescription, dental and vision. The long answer will
depend on how your company’s COBRA administrator interprets COBRA and a host of
other possible influences. Ultimately, you will need to check with the
administrator.
The good news: They have to notify you of your benefits,
what is offered to you, and the timing and cost involved.