What Are COBRA Health Benefits?

Full Video Transcript

TRANSCRIPT: Under the federal laws known as COBRA, you may be entitled to continue your employer-sponsored group health plan coverage that might otherwise be terminated upon certain events. COBRA requires continuation of such health insurance benefits if an employee is terminated or suffers a reduction of work hours that would otherwise make him or her ineligible for the health plan. Also, COBRA applies to spouses and dependents in the event of a covered employee’s death, divorce, or legal separation, or even when a child loses dependant status. The coverage is temporary, and the employee may be required to pay the premiums, plus a 2% administrative fee, in order to keep the benefits. However, avoiding a lapse in coverage will usually help you get private insurance on your own later. For more information about COBRA benefits, contact your HR department. For problems or denials of benefits, you might want to speak to an attorney who can help you protect your legal rights.