COBRA is continuation health care coverage. It dates back to 1986 when Congress enacted a law which required employers (those with 20 or more employees) to extend the option of their group health insurance to past employees, spouses, retirees and dependents. Generally, the employer is required to notify an eligible person that continuation of the group health insurance plan is available. For example, if a couple divorces, but the husband had the family’s health insurance through his job, then the wife could be eligible for COBRA coverage for a specified period of time following the divorce. However, the ex-wife would have to pay the monthly premium for her coverage

COBRA coverage has been considered costly- primarily because the applicant doesn’t have any contribution from the employer and, consequently, pays the entire premium.

New help from the government is available. If the employee is involuntarily terminated between September 1, 2008 and December 31, 2009, the federal government is providing a subsidy. The subsidy will pay 65% of the cost to maintain the coverage for up to nine months or until the employee gets new health care coverage through a new employer or through Medicaid.

Even if you passed up COBRA last fall, you may be able to qualify for the federal subsidy and apply for the insurance. If enrolled, the future nine months may be covered. However, the coverage is not retroactive.

If you are interested in more information on this important and current subject, you can call the Commissioner of Insurance for Wisconsin at 1-800-236-8517.