Individuals usually pay the cost of COBRA coverage and COBRA alternatives. Employers and/or former employers are allowed to pay for the coverage, but this is unusual.
If an employer wishes to pay the cost of COBRA coverage for a former employee, perhaps as part of a severance package, federal tax law now requires that this provision be included as part of the formal written health plan for all employees on a non-discriminatory for plan years beginning after 2010.
COBRA coverage may provide temporary coverage when changing jobs, going through a divorce or negotiating other life transitions. Choosing the right health insurance is crucial to guarantee health and financial security.