- 1). Determine whether you are qualified for continued health insurance under COBRA by asking the employer's plan administrator. If the business had 20 or more employees and you received health benefits when you were terminated or had your hours reduced, you are probably eligible for continued coverage.
- 2). Be sure you have a copy of the company's health plan rules so you know how to file a claim with the insurance company once you're covered under COBRA.
- 3). Within 60 days of the change in employment, fill out and return the COBRA forms you'll receive in the mail when the employer has notified the insurer of your new status. Note the cost of premiums and when they are due. The payments will probably be higher than what was deducted from your paycheck because COBRA requires individuals to pay up to 102 percent of the cost of insurance. Note how many days elapsed between your last day of full-time work and your election of COBRA coverage. It may be necessary to include payments for one or more months of premiums to account for the gap in coverage before COBRA coverage begins.
- 4). Be mindful that your previous employer had someone handling health care details for workers. You will have to ensure that premium payments and insurance records are in order to take advantage of COBRA insurance continuation.
- 5). While most beneficiaries are eligible for only 18 months of coverage, this may be extended to 36 months due to a disability or other event. The federal or state department of labor may be able to provide assistance in these circumstances.
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