Is COBRA Health Insurance Worth It in 2024?
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Cobra health insurance, often referred to as COBRA, is a federal law in the United States that allows certain employees and their eligible dependents to continue their group health insurance coverage for a limited period after their employment ends or their work hours are reduced.
The term "COBRA" stands for the Consolidated Omnibus Budget Reconciliation Act, which was enacted in 1986. COBRA coverage is typically more comprehensive and affordable than individual health insurance plans, but it is important to note that COBRA coverage is only available for a limited period.
Can you get COBRA Health Insurance in Canada?
COBRA health insurance is not available in Canada, and there is no direct COBRA equivalent in Canada — as Canada has its universal healthcare system. However, there are several private health and dental insurance plans available in Canada, which can provide additional coverage or coverage for those who are not eligible for public health insurance or who have lost group benefits at work.
Here are some of the best health insurance options in Canada:
- Sun Life health insurance
- Manulife health insurance
- Blue Cross health insurance
- Green Shield Canada health insurance
Take a look at these and more Canadian insurance options in detail right here. You can compare Canada's best health insurance plans using our comparator below and get free personalized quotes in a few seconds.
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Who can get COBRA Health Insurance?
COBRA benefits are available to both U.S. citizens and qualified non-citizens, such as lawful permanent residents and certain visa holders.
To qualify for COBRA health insurance, you must:
- Be a covered employee under a group health plan sponsored by an employer with more than 20 employees in the previous calendar year.
- Experience a qualifying event that would cause you to lose your health insurance coverage under the plan.
Qualifying events for COBRA include:
- Termination of employment (voluntary or involuntary)
- Reduction in hours worked
- Death of an employee
- Divorce or legal separation
- Child aging out of coverage (under age 26)
COBRA coverage allows individuals to maintain the same health insurance plan they had while employed, but they are responsible for paying the full premium, including the portion that the employer previously covered.
Good to know
Coverage typically lasts for up to 18 months for employees and their dependents. In some cases, it can be extended to 29 months for individuals who become disabled during the initial 18-month period or up to 36 months for certain other qualifying events.
