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COBRA

In 1985, Congress passed a law called the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Under COBRA, it's possible to keep your health care for a limited amount of time after you leave your job. Your employer must have 20 or more employees for you to be eligible. However, some states may offer similar benefits to employees of smaller companies. Keep in mind that with COBRA, you will usually be paying the full premium. This is what you were normally paying, plus the amount that your employer contributed.

Individual Plans

If COBRA is not an option or has run out, you can look for an individual plan. There are a lot of options, but there are a few downsides:

Individual insurance may be more expensive than COBRA.

If you are over 50, it may be harder for you to qualify.

You'll probably have to get a medical exam to prove that you don't have any serious health conditions.

You may get fewer benefits.

For more information on COBRA, individual and other insurance options, visit AARP's Insurance and Medicare section at http://www.aarp.org/health/insurance/.

Additional Resources

Publications

Fact Sheet — Health Insurance and Women — This publication explains what health insurance is and how it affects women. It gives information on health care options, what to do if you're uninsured, what to do if you don't qualify for government benefits, and what you can do to protect your health insurance benefits.

http://www.womenshealth.gov/faq/health-insurance-women.cfm

Health Insurance Portability and Accountability Act of 1996 — This Act was designed to protect health insurance coverage for workers and their families when they change or lose their jobs.

http://www.cms.hhs.gov/HIPAAGenInfo/Downloads/HIPAALaw.pdf

Questions and Answers About Health Insurance: A Consumer Guide — This guide describes different kinds of health insurance plans and answers common questions. There is a glossary of health insurance terms as well as a list of resources for more information.

http://www.ahrq.gov/consumer/insuranceqa/

Title XVII — Health Insurance for the Aged and Disabled — This report is an online copy of the Social Security Act Title XVII. It includes information on hospital and medical insurance benefits, Medicare, prescription drug benefits, and more.

http://www.ssa.gov/OP_Home/ssact/title18/1800.htm

Guide to Disability Income Insurance (Copyright © America's Health Insurance Plans) — This booklet explains the various sources of disability income, what disability income insurance is, and what it covers. It includes a worksheet you can use to evaluate personal sources of disability income, as well as a checklist of policy features you can use to compare disability income-insurance policies.

http://www.ahip.org/content/default.aspx?bc=41|329|352

http://www.bcm.edu/crowd/?pmid=1433

Health Insurance: Understanding What It Covers (Copyright © AAFP) — The publication is designed to help you understand the term "covered services." It also describes what you can do if your health care provider does not cover a physician-recommended treatment or prescription.

http://familydoctor.org/x2268.xml

Questions and Answers About Health Insurance (Copyright © AHIP) — This guide briefly describes the different kinds of health insurance plans available today. These include network-based plans, nonnetwork based coverage, and consumer-directed health plans. Also, you will find answers to many common questions you may have about health insurance. Resources are provided at the end of the booklet to help you find additional, more detailed information.

http://www.ahip.org/content/default.aspx?bc=41|329|20888

Organizations

= Indicates Federal Resources

Content last updated March 5, 2009.