Can you receive COBRA if you resign? This is a common question that many employees face when considering leaving their current job. COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, provides a temporary continuation of health coverage for employees and their families who lose their group health plan coverage due to certain qualifying events, including resignation. In this article, we will explore the eligibility criteria for COBRA coverage upon resignation and the process of obtaining it.
The first thing to understand is that COBRA coverage is not automatic. To be eligible for COBRA benefits after resigning, you must meet specific criteria. These criteria include:
1. Employment Status: You must have been employed by the company for at least 12 months or have worked at least 1,250 hours during the previous 12-month period.
2. Group Health Plan: You must have been covered under the employer’s group health plan for at least 18 months or the maximum time period allowed by state law, whichever is shorter.
3. Qualifying Event: Resignation is a qualifying event for COBRA coverage. However, certain conditions must be met, such as not having been terminated for cause or violating the terms of your employment agreement.
If you meet these criteria, you will have the option to continue your health coverage for up to 18 months, or 36 months if you are disabled or covered as a dependent child. The cost of COBRA coverage is generally higher than the cost of employer-provided coverage, as you will be responsible for paying the full premium, including the employer’s share.
To obtain COBRA coverage after resigning, follow these steps:
1. Notify Your Employer: Within 60 days of your resignation, you must notify your employer of your intent to elect COBRA coverage. This can typically be done through your HR department or the appropriate contact person.
2. COBRA Election Notice: Your employer will provide you with a COBRA election notice, which outlines the coverage options, costs, and how to enroll. You must enroll within 60 days of receiving this notice.
3. Pay Premiums: Make timely payments of your COBRA premiums. Failure to pay premiums on time can result in the termination of your coverage.
It is essential to understand that COBRA coverage is not a long-term solution. It is meant to provide a bridge until you secure new health insurance through another employer, a government program, or private insurance. If you have questions about your eligibility or the COBRA process, it is advisable to consult with your employer’s HR department or seek legal advice.
In conclusion, yes, you can receive COBRA if you resign, provided you meet the eligibility criteria. By understanding the process and adhering to the required deadlines, you can ensure a smooth transition to temporary health coverage during your job search.
