What is crucial for employees who wish to continue insurance coverage under COBRA?

The requirement for employees wishing to continue their health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA) is to notify their employer within a specified timeframe after experiencing a qualifying event, such as job loss or reduction in hours. Therefore, the focus is on timely notification rather than exercising benefits.

Specifically, individuals must elect to continue coverage within 60 days of receiving a notice of their rights under COBRA. This decision directly affects their ability to maintain their healthcare coverage after termination of employment or a reduction in work hours. The 60-day window is essential, as failure to act within this period results in the loss of the right to continue the group health plan coverage, which underscores the importance of acting promptly.

While switching to part-time employment, income levels, or exercising benefits does not directly influence the continuation of coverage under COBRA, notifying the employer within the allowed timeframe is critical to ensure that coverage remains uninterrupted.