Continuing Your Illinois Health Insurance under COBRA

Under federal law, most employers must allow you to continue your insurance for a minimum of 18 months after you retire.

If you choose health insurance continuation under COBRA and are not yet age 65 (Medicare eligible), you can continue the insurance for 18 months or until you reach age 65, whichever occurs sooner. When you become eligible for Medicare, you are no longer eligible for federal health insurance continuation.

However, if you are already eligible for Medicare when you stop working, you can continue the insurance for 18 months. With COBRA, certain "qualifying events" allow your spouse and dependent children to extend the health insurance for an additional 18 months. One such qualifying event is when the covered employee qualifies for Medicare after COBRA continuation begins. Even though you are no longer covered under your employer's health insurance, your spouse and dependents can be. Their coverage will continue for an additional 18 months after your coverage ends.

The 1996 Health Insurance Portability and Accountability Act

The 1996 Health Insurance Portability and Accountability Act (HIPAA) - also federal legislation - may provide additional COBRA related rights. It may allow workers with COBRA benefits to purchase private individual policies with no pre-existing condition exclusions after 18 months of COBRA coverage. Check with your employer regarding both COBRA coverage and the HIPAA rights.