Is there a grace period for coverage on health insurance when you switch carriers or lose your job?

The Consolidated Omnibus Budget Reconciliation Act (COBRA) provides a temporary continuation of health insurance coverage in certain circumstances, such as when you lose your job or switch health insurance carriers.

In general, COBRA requires employers with 20 or more employees to offer a temporary continuation of health coverage for up to 18 months to certain employees and their dependents who lose coverage due to a qualified event, such as:

- Involuntary termination of employment (other than for gross misconduct)

- Reduction in hours that results in a loss of coverage

- Death of an employee or covered dependent

- Divorce or legal separation from an employee who had coverage

- Employees and their dependents who are eligible for COBRA coverage must pay the full premium for the coverage, plus an administrative fee.

It's important to note that COBRA coverage is temporary, and it typically expires after 18 months. However, there are certain exceptions and special rules that may extend COBRA coverage beyond 18 months in some cases.

If you lose your job or switch health insurance carriers, it's important to contact your current health insurance carrier or your employer's human resources department to find out if you are eligible for COBRA coverage. You must act quickly because the deadline for enrolling in COBRA coverage is typically 60 days from the date of your qualifying event.

It is important to note that COBRA is a federal law, but some states may have additional requirements or regulations related to COBRA coverage. Therefore, it is recommended that you also consult with your state's insurance department to determine any additional requirements or benefits available to you.