Texas COBRA Insurance
In addition to the federal COBRA insurance coverage, the state of Texas also offers an extended COBRA insurance plan for employees at companies with between 2-19 employees. This means that even if you do not meet the requirements for federal COBRA insurance, you may still be eligible for COBRA insurance coverage in Texas.
Eligibility: In order to be eligible for Texas COBRA insurance, you must have been covered by the employer group health insurance plan employment loss and have a qualifying event that entitles you to COBRA insurance. You also can not qualify for federal COBRA insurance. As with federal COBRA laws, your beneficiaries are also eligible for COBRA insurance in Texas. You are not eligible for Texas COBRA insurance if you are eligible for Medicare or if you qualify for another group health insurance plan.
Signing Up: To sign up for the Texas COBRA insurance coverage, you must apply in writing after employment loss. You also must pay the COBRA premium in advance. Your employer and the group health insurer should provide you with an election notice for COBRA insurance when your employment ends, however you should immediately reach out to your insurer if you do not receive notification.
Length of Coverage: Texas COBRA insurance covers you for 6 months from the day your group health insurance plan stopped coverage. This applies to former employees, spouses, and dependents.
Termination: Texas COBRA insurance can be terminated for a variety of reasons. The most common reasons for termination of Texas COBRA insurance coverage is failure to pay premiums, termination of the group health insurance plan by the employer.
For help signing up for Texas COBRA insurance, you may consider contacting the following state agencies.
Texas Department of Insurance
P.O. Box 149104
Austin, TX 78714-9104
Phone: 800 252-3439
U.S. Department of Labor Employee Benefits Security Administration
Dallas Regional Office
525 South Griffin Street, Room 900
Dallas, TX 75202-5025
Frequently Asked Questions
Can I continue COBRA insurance just for my spouse?
Yes. When you receive your COBRA insurance enrollment form, you will be able to choose you would like to sign up for COBRA insurance coverage. This means that you can pick and choose who will continue to be covered under the health insurance policy with COBRA. You can choose to just cover your spouse and find alternative insurance for yourself.
Can my COBRA insurance premiums change?
Yes. Since COBRA insurance is just a continuation of your group health insurance plan, any changes to that plan, including an increase or decrease in premium costs, will also affect your premium cost under COBRA insurance. Your bill will reflect any changes in costs for the premium. COBRA insurance premiums cannot be locked in at any point.
Are my COBRA insurance premium payments tax deductible?
It all depends on your health insurance plan and your current income and taxes. Unfortunately there is no simple answer here. The easiest way to find out if your health insurance premiums under COBRA is to contact your health insurance administrator or reach out to the IRS or a specialized tax agent.
Can I use COBRA insurance more than once?
COBRA insurance laws apply each and every time you leave a job and meet the COBRA insurance eligibility requirements. That means that you can be eligible for COBRA insurance multiple times in your life as long as you meet the federal or state requirements.
What other options do I have if I don't qualify or want state sponsored COBRA insurance?
There are many other options for health insurance, many of which are less expensive than typical COBRA plans: Alternatives to COBRA.
How many days do I have to elect COBRA insurance?
Under the current law, you have 60 days to decide if you want to elect COBRA insurance. During that time it is important that you explore all of your options to make sure that is the right plan for you. The exact date that you need to make an enrollment decision will be listed on your COBRA insurance election form.
Where can I find a list of doctors for COBRA insurance?
Since COBRA insurance is actually legislation that allows you to choose to continue receiving your previous group health insurance plan, there will not be a list of doctors that take COBRA insurance, but instead the same doctors that were covered under your previous health insurance plan will still be covered. If you need a list of those doctors, you should contact your health insurance plan administrator.
Can I keep COBRA insurance even if my new job offers health insurance?
Sometimes people may find a new job but still would like to stay on their previous plan with their former employer under COBRA because they prefer that plan. This is completely possible under COBRA insurance laws as long as you do not sign up for the new insurance. However, when your COBRA insurance benefits run out, you will likely want to sign up for your new employers health insurance plan or find a private plan.
What is state sponsored COBRA insurance?
State sponsored COBRA generally looks identical to the federal COBRA insurance coverage but applies to more people than the federal law. It allows someone to extend their group health insurance coverage after losing their job for a specified period of time. This time period varies from state to state. Also, the cost varies from state to state.
Should I sign up for COBRA insurance if I only need insurance for a month?
As long as your new insurance will kick in within the 60 day window you have to elect to sign up for COBRA insurance, there is no need to sign up for COBRA insurance. The reason for this is that you elect to sign to sign up for COBRA insurance on the 60th day, your health insurance will be retroactive until the last day of your employment. That means that if for any reason you got sick or needed medical attention during the 60 days, you could then just pay the premium and be covered for those expenses. If you don't end up needing medical attention in those 60 days then you didn't waste the money paying for the two months of premiums. Essentially, you would actually never be without coverage, since you can activate it at any time within the 6o days and cover the full term.
Your other option would be to sign up for a short term health insurance plan, which can be anyway from 1 day to 1 year, at a much cheaper rate than COBRA. This would cover you for any major medical costs.