What are the laws on COBRA?
COBRA is a federal law that allows an employee and his or her dependents to continue medical insurance coverage for up to 18 months after leaving a job. The law covers those who quit their job as well as those who are involuntarily terminated except for gross misconduct. An employer with subject to the law must provide written notice offering COBRA coverage to an employee following a “qualifying event” (e.g. job termination). Be aware that full cost of the insurance, plus up to a 2 percent administrative fee, must be paid by the employee. Although the insurance may be expensive, remember that coverage is purchased at a group rate and that an individual policy purchased independently may be much more expensive. COBRA coverage is typically available for up to 18 months after you leave a job. In some cases, your spouse and dependent children may be eligible for COBRA continuation for up to 3 years. Many workers use COBRA during the waiting period before health insurance benefits begin at
