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Companies that provide health insurance to their employees often extend that coverage to the dependents of employees as well. So, one way to be covered under an employer-sponsored plan is to be a dependent (child, spouse or domestic partner) of an employee.

Through a federal law known as COBRA, former employees may also continue their coverage under an employer-sponsored health insurance plan in certain circumstances. If you are laid off or leave your job (or if you are a dependent of a person who is laid off or leaves his or her job) and you qualify for COBRA, you can opt to continue your coverage under the employer plan for up to 18 months, at your own expense. That means you will have to pay the full monthly premium that had previously been split between the employee and the company.

Employees (and dependents of employees) who lost their jobs due to a lay-off that occurred between September 1, 2008 and March 31, 2010, may qualify for a federal subsidy designed to make COBRA coverage more affordable. The government subsidy covers 65% of your monthly COBRA premium for up to 15 months. There has been some discussion in Congress about extending the eligibility period for the COBRA subsidy but as of this date no extension has been signed into law.

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Q: Does a person have to be employed to be cover under a company policy for health insurance?
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