Page 113 - Group Insurance and Retirement Benefit IC 83 E- Book

coverage, or offers coverage to only certain groups of employees and you're not one of

them, you won't be eligible for COBRA even if one of the qualifying events occurs -- nor
will your spouse or children be eligible.

Your COBRA coverage ends when:

You reach the last day of maximum coverage.

Premiums are not paid on a timely basis.

The employer ceases to maintain any group health plan.

You obtain coverage through another employer group health plan that does not contain

any exclusion or limitation with respect to any pre-existing condition of a beneficiary. A
beneficiary is entitled to Medicare benefits.

Paying for COBRA

Eligibility isn't the only issue you should consider when it comes to COBRA. Cost is
another major factor.

Sticker shock: For some, COBRA still proves elusive
The cost of the monthly premiums for COBRA can come as quite a surprise if you're

accustomed to your employer picking up most of your health insurance tab via pretax
paycheck deductions. When you opt to buy COBRA, you must pay the full premium

amount -- which can be a hefty monthly sum, even for group health coverage. And don't

forget to add as much as 2% on top of that for the administrative fees.

"For a family, you figure COBRA coverage is going to be $400 or $500 a month instead
of $40 or $50 a month. And in most cases, they're not even getting a tax COBRA.

Insurance anymore," explains Paul Fronstin, a senior research associate with the
Employee Benefits Research Institute (EBRI), a Washington-based nonprofit,

nonpartisan organization that conducts research about employee benefits.