Cobra Insurance Washington: What You Need to Know

COBRA insurance is a health insurance plan that allows you to keep your current insurance coverage even if you lose your job or your hours are reduced. If you live in Washington state, it’s important to understand how COBRA works and how it can benefit you. In this article, we’ll go over the basics of COBRA insurance in Washington, including who is eligible, how much it costs, and how to apply.

What is COBRA Insurance?

COBRA insurance is short for the Consolidated Omnibus Budget Reconciliation Act. This law was passed in 1986 and requires employers with 20 or more employees to offer continued health insurance coverage to employees and their families when certain events occur.

The events that may trigger COBRA eligibility include:

• Termination of employment (except for gross misconduct)
• Reduction in work hours
• Divorce or legal separation
• Death of the covered employee

If you are eligible for COBRA insurance, you can typically keep your same health insurance plan for up to 18 months (sometimes longer, depending on the circumstances).

Who is Eligible for COBRA Insurance in Washington?

In order to be eligible for COBRA insurance in Washington, you must meet the following criteria:

• Your employer must have 20 or more employees
• You must have been covered by your employer’s health insurance plan
• You must have experienced a qualifying event (such as termination of employment or reduction in work hours)
• You must not have lost your insurance coverage due to gross misconduct

If you meet these criteria, you should receive a COBRA notification from your employer within 14 days of the qualifying event.

How Much Does COBRA Insurance Cost in Washington?

The cost of COBRA insurance in Washington varies depending on the specific health insurance plan that you were enrolled in before your qualifying event.

Under COBRA, you are required to pay the entire premium for your health insurance plan, including the portion that was previously paid by your employer. This means that your monthly premium may be significantly higher than what you were paying before.

However, the good news is that under the American Rescue Plan Act of 2021, you may be eligible for a temporary premium reduction for COBRA coverage. This means that you may only have to pay 15% of your monthly premium for a certain period of time. Check with your health insurance company for more information on this option.

How Do I Apply for COBRA Insurance in Washington?

If you are eligible for COBRA insurance in Washington, you should receive a notification from your employer within 14 days of the qualifying event. This notification should include information on how to enroll in COBRA coverage.

You will typically have 60 days from the date of the notification to elect COBRA coverage. After you elect coverage, you will have another 45 days to make your first premium payment.

FAQ

What happens if I don’t elect COBRA coverage?

If you don’t elect COBRA coverage within the 60-day window, you will lose your eligibility for COBRA and will need to find another health insurance plan.

Can I keep my same health insurance plan under COBRA?

Yes, under COBRA, you can typically keep your same health insurance plan for up to 18 months (sometimes longer, depending on the circumstances).

Can I enroll in COBRA coverage if I quit my job?

No, you are only eligible for COBRA coverage if you experience a qualifying event, such as termination of employment or reduction in work hours.

What happens if I can’t afford the COBRA premium?

If you can’t afford the COBRA premium, you may be eligible for a temporary premium reduction under the American Rescue Plan Act of 2021. Check with your health insurance company for more information on this option.

Conclusion

If you live in Washington state and have recently experienced a qualifying event, it’s important to understand your options for continued health insurance coverage. COBRA insurance may be a good choice for you, as it allows you to keep your same health insurance plan for a certain period of time. Be sure to carefully review the costs and eligibility requirements before making your decision.