If you lose your job, leave your job, or change the number of hours you work, it is likely that you have options which will allow you to temporarily continue your group health coverage.  At a time when health costs are skyrocketing and individual plans cost more and offer less, this could be a critical option for you and your family.

Under the provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA), former employees, retirees, spouses and dependent children are given the right to continuation of health coverage for a limited period of time at group rates. The statute applies to group health plans maintained by employers with 20 or more employees in the prior year; to plans in the private sector and to those sponsored by state and local governments; but not to plans sponsored by the Federal government.

It is important to understand that under COBRA, you must pay your own premiums and the period of time for which your company can allow you to stay with the group plan is dictated by law.  The company has no choice but to terminate coverage (after 18 months in most cases) for former employees. During the time you  are covered, you MUST be allowed to receive the exact same coverage, with no reductions of services or benefits, that you received as part of the group health plan.  However, you yourself may choose, for the purpose of reducing your premiums, to cut back on some of the non-core benefits you previously enjoyed when your employer was paying for your coverage.  For example, you might drop dental and vision coverage or the prescription plan if they fall into the non-core category.