Hmmm.....not an expert on Cobra but you have to be in a Cobra eligible situation and the company you work for has be a Cobra providing company (or school). It is company based not insurance based. You are eligible for up to 18 months. The business you work for will give you paperwork on the vendor they use for Cobra administration and they have 30 days from the last day of employment to give it to you and you have 60 days to elect. The new vendor will take over admin of your insurance plan. You will pay them 105% of the premium but the government has subsidies if you qualify.
Here is the website for more answers:
COBRA Continuation Coverage
Here's another thing to consider, if your DH goes the self-employed route. If he purchases an individual health insurance policy, then the premiums are deductible as a business expense, which in turn lowers his self-employment tax. The deduction is only available for the months that he (and you if you're employed) are not covered by or eligible for an employer's group health plan. And it's only available to the extent that the business otherwise makes a profit, meaning you can't take the full deduction if it puts the business into the negative on earnings for the year.
Publication 535 (2012), Business Expenses
Form 1040 Line 31 Self-Employment Health Insurance
It takes 12 pounds of grain and 2500 gallons of water to produce ONE POUND of beef.
Livestock generates 65% of all human-related nitrous oxide, which is 296 times more warming to the environment than carbon dioxide; 37% of all human-related methane, which 23 times as warming as CO2; and 64 percent of ammonia, which contributes significantly to acid rain.
"If you care about the planet, it's actually better to eat a salad in a Hummer than a cheeseburger in a Prius."
-- Bill Maher
Cobra is expensive but cheaper than a $13,000 surgery
Last edited by SID081108; 03-27-2013 at 06:04 PM.
CARRIE and DH 7/14/07
Thank you for coming to correct the information. I do not work as a Cobra vendor so I didn't realize the subsidy had ended.
A direct pay plan may work in your favor if local rules allow you to elect an individual plan if you are Cobra eligible.