How to Renew Cobra Health Insurance After 18 Months

Individuals who are laid off from their jobs can elect to continue their current health insurance coverage under COBRA. Employees who are terminated are also eligible for COBRA coverage as long as the termination was for a reason other than gross misconduct. Although coverage under COBRA can be quite expensive, this is a viable solution for retaining coverage until a worker secures new employment. Typically, COBRA coverage lasts for a maximum of 18 months; however, in some circumstances of injury, enrollees can extend coverage for a longer period of time.

Difficulty:Moderate

Instructions

Things You'll Need

If you've been disabled within the first 60 days after the loss of employment, file for disability through the Social Security Administration (SSA) as soon as possible. It can take several months for the SSA to process and approve a disability application, so file your application before the layoff or termination occurs, if possible. You do not have to receive disability benefits before the end of the 60-day period, but you do have to have a ruling from the SSA.

The disability ruling must be in writing on a form proscribed by the SSA. Make several copies of the ruling letter. You will need these copies to extend your COBRA continuation coverage.

Contact your plan's administrator to obtain the address where correspondence should be sent. Mail a copy of the SSA's ruling letter to the plan administrator. You must mail the copy of the ruling letter within 60 days of receipt. The letter must be received by the COBRA plan administrator before the 18-month COBRA continuation coverage period ends. Send all correspondence via certified mail so you can obtain proof that it was received by the plan administrator.

Obtain confirmation that the plan administrator has received the copy of the SSA disability ruling. You and your family will be eligible for an additional 11 months of COBRA continuation coverage. Because the plan can charge 150 percent of the standard COBRA rate during the extension period, you will receive a new payment amount from the administrator. As long as you continue to make premium payments at the new amount, you can continue receiving coverage benefits during the extension period.

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