Who pays for COBRA coverage or the alternatives?

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. 

revised 1/8/11

(back to index of frequently asked questions about COBRA coverage) provides help with COBRA issues

COBRA continuation coverage may provide temporary protection when changing jobs, waiting for other coverage, going through a divorce or negotiating other life transitions. Choosing the right health insurance is crucial to protect your health and financial security.