Cobra Health Coverage in Arizona
Arizona group health insurance ends because of
what is termed a "qualifying event," you may be
eligible for an extension of that coverage under
COBRA (the Consolidated Budget Reconciliation
event is defined as one of the following:
employee's job ends.
in the employees' hours (he or she becomes
part-time, and no longer qualifies for full-time
dependent is divorced or legally separated for
the primary employee, triggering a loss of
coverage for the dependent.
dependent of the employee is no longer
considered eligible because, for example, a
birth date puts him or her past the maximum age
for whom you are a dependent has turned 65 and
has gone on Medicare.
*The death of
the employee for whom you were an eligible
dependent when she or he was alive.
You are not
eligible COBRA if the following apply:
terminated for "gross misconduct."
*You did not
meet the enrollment time limit deadline.
*You did not
pay your COBRA premiums on time
coverage or are become covered by another health
group must have 20 or more employees for COBRA
to be available.
receive notification of COBRA eligibility when
you leave your job, your hours are cut or your
status is changed as a dependent. You have 60
days from the date of the notice to notify in
writing whoever manages the employee health plan
what your intentions are. This also applies if
you have divorced, or legally separated, or you
are no longer eligible as a dependent.
It is the
responsibility of the manager of the group
health plan to send you a notice about the
amount of the premium due and how to sign up for
Once you have
received this notice, and before the deadline
passes, you should send in the application with
the correct premium amount. It will be your
responsibility henceforth to make the premium
payments in a timely manner to keep the COBRA
coverage in effect.
employees are surprised when they find out the
cost of their new COBRA coverage. You basically
are now paying the total cost of what the
company was paying before, which can mean that
your are paying the company's share under the
previous set up as well as your own. Group
insurance is typically more expensive than
individual Arizona health insurance because it
is guaranteed issue; the premiums are high to
cover the cost of those employees in the plan
who have preconditions. If the company is paying
the total premium, it is not an issue when you
were covered as full-time employee; but if you
start paying all or part of it, you will quickly
become aware of the higher cost.
coverage is not automatically issued; you do
have to apply for it. It is paid monthly and can
be canceled monthly as well. You also have a
62-day window in which to apply. If you wait to
the deadline, you will have to pay for the
previous two months to bring the COBRA coverage
up to date.
You have the
same benefits under COBRA as you had under your
prior Arizona group health insurance, or for any
other employee currently enrolled under the same
plan. If open enrollment periods are offered to
the other employees, you must be switch plans,
too. There are no restrictions because of
preconditions. If your precondition was covered
under the old plan, it will be covered under
COBRA. Any additional plans offered to the
group, such as dental and vision, must be
offered to you as well under COBRA.
expires, you can get coverage from an individual
or family Arizona health insurance plan, unless
you have preconditions that preclude this; or
you can apply for a HIPAA/portability or
conversion plan. HIPAA plans are guaranteed
issue but very expensive.