As layoffs, hiring freezes and recession fears continue to (understandably) grab headlines, it is important for employees to understand the benefits available to them, especially if their roles are cut. We sat down with Mark Waterstraat, Chief Customer Officer at Alegeus and an industry expert in consumer health care funding, to learn more about health benefits for those impacted, specifically COBRA—how it works, who is eligible, what it costs, and more.  

Can you explain what COBRA insurance is and how it works?

COBRA is a federal law that applies to employers with 20 or more employees. It allows individuals covered under the employer's group health plan to elect to continue coverage under the employer's health insurance when they lose coverage because their normal relationship with the plan ends (for example, on termination of employment or reduction in hours or when a dependent's relationship with the employee ends through divorce, death of the employee, or a dependent child aging out of the plan).

Who is eligible for COBRA insurance, and for how long are you eligible?