The Employee Benefits Security Administration released a tip sheet with guidance for protecting benefits after job loss.
Federal laws protect health and retirement benefits when those benefits are lost in connection with a job termination. Terminated employees have options with their health coverage.
- Enroll in another employment-based health plan. When an employee loses employer health coverage due to job loss, the employee is entitled to a “special enrollment” right under a spouse’s employment-based health plan. Special enrollment must be requested within 30 days of losing eligibility for other coverage.
- Continue current coverage through COBRA. If your former employer’s group health plan was subject to COBRA, an employee has the right to temporarily continue health coverage, at their own expense. Former employees generally have 60 days to elect COBRA continuation and 45 days to pay for coverage. Coverage may cost more than when the employee was employed because the employer will require payment of the full cost of coverage, plus 2%.
- Enroll in individual coverage. Individual health coverage may be purchased through the Health Insurance Marketplace. Marketplace coverage may come with a tax credit lowering monthly premiums.
A copy of the EBSA fact sheet may be accessed by clicking here.
