COBRA (Consolidated Omnibus Budget Reconciliation Act) gives rights that would permit you to continue your health insurance coverage for time period after you leave work. Continuation is a similar program available in some states for smaller employers. The rules are complicated, but the concept is easy. If you have had a health insurance plan through your company for a specific time of period, and then you lose this coverage, you have a guarantee to continue this health insurance policy for a certain amount of time. Your spouse and child or children also have the rights to continue this insurance.

The exception to this right is if you are terminated from your job because of your gross misconduct or the group plan itself ceases to exist. The later could occur if the company faces any financial loss in business or drops their insurance coverage.

The number of employees of your company determines whether you can keep your insurance through COBRA or not. Generally, if you work for an employer that has 20 or more employees, COBRA benefits will be available to you. If you are eligible, you can usually keep this coverage for up to 18 months. Since each state has its own guidelines, you will need to check with your employer for more details. It is your employer’s responsibility for notifying you about your COBRA rights at the time of your termination or loses your insurance coverage.

You will have to pay the full premium for your coverage and two percent of an administration fee. The cost of continuing your coverage may be prohibitive. You need to find out in advance what the costs are if you are planning to use this option. You only have a limited time to elect this option after you leave work.