Often, in the event of a strike, the company will cut off employer provided healthcare coverage for the striking employees. However, thanks to COBRA, there is no need to panic. COBRA is a federal law which requires the continuation of healthcare coverage for employees, their spouses, and dependent children when coverage would otherwise be lost due to certain “specific events”. One such “specific event” which triggers COBRA Continuation Health Coverage is when healthcare coverage is lost in the event of a strike. 

Depending on the situation, the employer may terminate employer-provided healthcare coverage shortly after the strike begins. If this happens, the insurance company has up to 14 days to inform you of your COBRA rights via an Election Notice Letter. This letter will inform you of your right to continue coverage for you, your spouse, and your dependents for up to 18 months. 

The letter will also provide the cost to the employees of continuing their coverage during the strike. This cost is typically far more than the cost of coverage for active employees, because the employer is typically no longer paying the employer's portion of the premium. The maximum cost to the employee of COBRA's continued coverage is 102% of the total premium. 

The letter will also provide an address to which you may send your response as to whether you would like to elect to continue healthcare coverage or not. You have up to 60 days (starting from the day you received the Election Notice Letter) to respond. You can wait until the 59th day to respond, and as long as you respond that you do want to elect COBRA coverage within 60 days, your coverage will be retroactive back to day 1. For example: If you have not yet responded, and then you break your leg on day 50, you can get treatment on day 50, respond that you would like to elect COBRA coverage on day 55, and your medical bills will be covered despite the fact that you have not yet responded before you were treated. Therefore, it makes sense for many people to wait until the 59th day to respond with the hope that the strike may have been settled by 25 then. (Note: We recommend that this response be sent via certified mail so that you can verify the date the response was sent.) 

In addition, payment for COBRA continuing coverage is not due until the 45th day after you elect coverage. This gives you an additional 45 days (in addition to the 59 days) before you must make any payments. However, the payment must be made by that 45th day or COBRA coverage may be canceled. Additionally, in the strike settlement between the union and the company there are often (but not always) provisions which retroactively pay for any COBRA premiums or uncover eligible medical expenses that were incurred while on strike. 

Finally, it is always a good idea to fill prescriptions and obtain all planned medical treatment before your ratification vote. This way, if you and your brothers and sisters do vote to strike, you will have all of your planned medical needs taken care of, and you will be better prepared to weather the strike.