Cobra Insurance Arizona: Everything You Need to Know

If you live in Arizona and recently lost your job, you may be worried about losing your health insurance. Luckily, there is a federal law called COBRA that could help you continue your health coverage even after leaving your employer. In this article, we will explore COBRA insurance in Arizona and provide answers to some frequently asked questions about the topic.

What is COBRA Insurance?

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. This law was passed in 1985 and allows employees and their families to continue their employer-sponsored health coverage for a certain period of time after a qualifying event, such as job loss, reduction in work hours, or divorce.

Under COBRA, you can keep the same health insurance plan you had while employed, but you will have to pay the full cost of the premium yourself, plus a 2% administrative fee. This can be a significant expense, but it is often more affordable than buying a new health insurance plan on the individual market.

COBRA coverage can last for up to 18 months for most qualifying events, but some circumstances may allow for a longer period of coverage. It is important to note that you must elect COBRA coverage within 60 days of losing your job, or you will forfeit your right to continue your employer-sponsored health insurance plan.

Who is Eligible for COBRA in Arizona?

Most workers in Arizona are eligible for COBRA if they lose their job, have their work hours reduced, or experience another qualifying event. However, there are some exceptions to the law.

For example, businesses with fewer than 20 employees are not subject to COBRA regulations. Additionally, if you are fired for gross misconduct, you may not be eligible for COBRA coverage.

FAQ

Question
Answer
How much does COBRA insurance cost in Arizona?
The cost of COBRA insurance in Arizona varies depending on the plan and your former employer. However, you can expect to pay the full cost of the premium, plus a 2% administrative fee.
How long does COBRA coverage last?
COBRA coverage can last for up to 18 months for most qualifying events, such as job loss. However, some circumstances may allow for a longer period of coverage.
Can I choose a different health insurance plan while on COBRA?
No, you must keep the same health insurance plan you had while employed under COBRA regulations. However, if your former employer changes their health plan options, you may be able to switch to a different plan.
Can my dependents continue their coverage under COBRA?
Yes, under COBRA regulations, your dependents can continue their health insurance coverage for the same duration as your coverage.
Do I have to elect COBRA coverage immediately after losing my job?
No, you have up to 60 days to elect COBRA coverage after losing your job. However, it is important to do so as soon as possible to avoid a coverage gap.

How to Enroll in COBRA Insurance in Arizona

To enroll in COBRA insurance in Arizona, you must first receive a notice of your rights to continue your health insurance coverage. This notice should be provided by your former employer within 14 days of your qualifying event.

Once you receive the notice, you have 60 days to elect COBRA coverage. You will have to fill out a form and submit it to your former employer, along with the premium payment. Once your coverage is activated, you will be responsible for paying your premiums on time to avoid losing your coverage.

Final Thoughts

COBRA insurance can be a valuable resource for those who have lost their jobs and want to maintain their health insurance coverage. While the costs may be higher than what you paid while employed, it may be more affordable than purchasing a new health insurance plan on the individual market. If you are considering COBRA in Arizona, be sure to read the notice from your former employer carefully and make a decision within the 60-day enrollment window.