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Summary

What COBRA is: COBRA is a federal law which allows eligible employees to keep their employer-sponsored health insurance coverage for a specific time period when they experience a qualifying event.  

As a general matter, COBRA lets you continue coverage for 18 months. If you stop work because you are "disabled" as confirmed by Social Security, you can continue coverage for an additional 11 months (which covers until the time when Medicare coverage automatically starts for people who are "disabled").  

Who COBRA applies to:

  • COBRA applies to employees and their dependents of an employer with 20 or more employees. 
  • If you work for an employer with less than 20 employees, you may have similar coverage under the law of the state in which you live. As a general matter, the discussion about COBRA fits both the federal and state laws. For information about your state, click here.

Premiums: Employers are not required to pay premiums for COBRA coverage (although some do voluntarily.)  Generally, the employee takes over payment of the entire premium -- not just the amount that was previously paid as an employee. Employers are allowed to charge an additional two percent (2%) of the premium for adminstrative overhead. Generally the amount of the premium is less than individual health insurance, even wtih the extra 2%..

Health Condition: The condition of your health doesn't matter when applying for COBRA because there are no health questions and no physical exam to qualify for COBRA coverage. COBRA is merely a continuation of the group plan. If you are a member of the group, COBRA applies so long as you pay the premium. If you stop work because of a health condition, and want to qualify for the extension beyond 18 months, you must prove you are "disabled" to Social Security and Social Security must agree, during the 18 months.

Tied to An Employer's Plan: Because COBRA only continues an employer's plan, COBRA only continues so long as the employer's health plan continues in effect for active employees. If the plan is discontinued for active employees, COBRA stops for employees no longer working for the employer.

When considering whether to take COBRA or to look for other health insurance, think about the costs you would have to pay under each policy, whether a policy covers your health needs, and whether it permits you to see the doctors and get the treatments you want. It is advisable to compare the coverage you can obtain under COBRA and the cost to wht you can obtain in the marketplace because of the Affordable Care Act (Obamacare). Once you have enrolled in COBRA, you cannot switch to a marketplace plan until the next open enrollment period

How to apply for COBRA: 

  • The correct procedure for applying for COBRA depends on your particular cirumstance. To learn about the way the applies to you, click here
  • For information about applying for a COBRA extension because of "Disability" as defined by Social Security, click here

If  you have COBRA and it is about to terminate, start looking for health insurance. For example, one alternative is buying an individual policy. Thanks to the Affordable Care Act (commonly referred to as "Obamacare") you have the right to purchase individual health insurance at the same rates as a healthy person despite your health history.  

Keep in mind that the rules are strict both for getting coverage and keeping COBRA. The rules have to be followed or you lose your right.

For additional information see:

To Learn More

What COBRA Is

COBRA is short for the Consolidated Omnibus Budget Reconciliation Act  which was passed by Congress in 1986. COBRA was amended by a bill known as OBRA which extended the basic coverage for an additional period of time for employees who stop work because of disability. As a general matter, the two laws together are known as COBRA.

To confuse matters even further, state laws which accomplish the same thing as COBRA for employers not covered by COBRA are also referred to as COBRA.




Who Is Protected Under COBRA?

All employees covered under an employer's health insurance plan are covered by COBRA.

There is no minimum period of time the employee must have health insurance before qualifying for COBRA. Being covered for even one day is enough.

COBRA protects:

  • Most people who, on the day before a qualifying event, are covered under a group health plan. This includes:
    • The person who worked for the employer,
    • The covered husband or wife of that covered employee, and
    • Covered dependent children of a covered employee.
    • It does not include significant others or domestic partners, even if that person was covered under the group plan
  • Employees whose hours are reduced so that they are no longer eligible for insurance.
  • Spouses:
    • A spouse married after a qualifying event, but without independent COBRA rights. (Once a person loses coverage, each individual's right to COBRA is separate and independent from the other COBRA beneficiaries in the same family.)
    • Ex-spouses after the divorce becomes final, whether the covered person is working or not.
    • Widows/widowers when the employee dies, whether the person is still employed or on COBRA.
  • Children:
    • A child that was a dependent while the employee was still working but not listed under the health plan can be added during the COBRA period, but without independent COBRA rights of his or her own.
    • Any child born to or placed for adoption with a covered employee during a period while COBRA continues health coverage. To be covered, the child must be enrolled in the plan within thirty-one days after the child is born or acquired. These children acquire independent COBRA rights.
    • Dependent children who lose coverage because of age, marriage or loss of student status.

Significant others, domestic partners and gay couples are not eligible for continuation benefits under COBRA. However, many employers who offer domestic partner coverage voluntarily offer some form of continuation of coverage equivalent to COBRA.

The Date COBRA Coverage Starts

COBRA coverage starts from the date of the qualifying event that actually causes the loss of coverage, not the actual date of the loss of coverage. For example, when Harriett is laid off, her employer gives her three months of health insurance as part of a severance package. The Qualifying Event, the layoff, occurs three months before there is any loss of coverage. Harriett's COBRA protection starts on the date of the layoff, not on the date the three months of health coverage ends.

The Date COBRA Coverage Ends

COBRA coverage can end early if:

  • You fail to pay the premium before the end of the grace period -- and there is no reinstatement of coverage either.
  • The employer ends group health insurance coverage for all workers. For example, if the employer stops offering health insurance to the active employees or goes out of business. As long as the employer covers any employees under a health insurance plan, even if it's not at your location or not the same division or subsidiary, you must be offered continuation under the existing plan.
  • You, as an employee or as a dependent, become covered by Medicare or by other group insurance that covers you, so long as the new coverage does not have a limitation or exclusion based on a pre-existing condition. However, if you become entitled for COBRA continuation after you become eligible for Medicare, you may continue them both. For example, if you work past age 65, start Medicare at 65, then stop working at age 67, stopping work would trigger 18 months of COBRA. If, however, you stopped working at age 64 and started your COBRA coverage, instead of having COBRA continuation for 18 months, your right to continue COBRA would end when you turn 65 and become eligible for Medicare. 

The time period during which health coverage may  be continued under COBRA varies depending on:

  • The identity of the person in question and
  • Whether the covered employee stops working because of "disability" or for any other reason.

Health insurance coverage can be terminated sooner if certain events occur, such as non-payment of premium.

Termination events are different for terminating employees as well as for spouses and dependent children.

Terminating employees

  • When the term runs out. 
    • Terminating employees who stop work for any reason other than disability: may continue their coverage for up to 18 months from the date of the qualifying event.
    • Terminating employees who lose coverage because they stop working because they  are "disabled" when they stop work, or become disabled within 60 days of stopping work may continue their coverage for an additional 11 months for a total of 29 months from the date of the qualifying event  if they follow the rules. (To learn more, see, How To Apply For A COBRA Extension Because Of Disability.)
  • Earlier in the following events:
    • Non payment of the premium
    • When the employee obtains other health insurance and the new coverage does not contain an exclusion or limitation with respect to pre-existing conditions
    • When the employee becomes eligible for Medicare
    • The employer ceases to maintain a group health plan;
    • The coverage is provided by a managed care arrangement (PPO or HMO); and the beneficiary moves out of the servicing area of the plan

Spouses and dependent children

  • Divorce or legal separation from the covered employee: Spouses and dependent children may continue their coverage for 36 months from the date of the divorce of legal separation.
  • Employee stops working:
    • Not because of disability: Spouses and dependent children may continue their coverage for 18 months from the date of termination of a non-disabled employee.
    • Employee stops working because of disability: Spouses and dependent children may continue their coverage for 29 months from the date of termination of a disabled employee.
  • If an employee becomes entitled to Medicare (either before or after the spouse retires), the spouse and children can continue COBRA coverage for 36 months from the date of the spouse's retirement.
  • Loss of dependent child status: dependent child can continue coverage for up to 36 months

When COBRA ends, you are guaranteed the right to convert to an individual health plan thanks to the Affordable Care Act (sometimes referred to as "Obamacare.")

What To Do Before COBRA Terminates

Before COBRA terminates, start the process for obtaining other health insurance. Thanks to the Affordable Care Act (sometimes referred to as the ACA or "Obamacare"), you can purchase health insurance coverage without being denied because of a pre-existing medical condition.  To find options in your state, visit: www.healthcare.gov offsite link

NOTE:  If you have young children on your health insurance policy, check to see if they can qualify in your state for the Children's Health Insurance Program (known as CHIP) offsite link. CHIP covers children in families that earn too much to qualify for Medicaid, but too little to afford private health insurance. If you can insure your children through CHIP, your COBRA premium will be less.

" Qualifying Events" Under COBRA

COBRA only applies when a qualifying event occurs.  Qualifying events for:

Employees:

  • Voluntary or involuntary termination of  a covered employee's employment  for any reason, unless the employee is let go because of  gross misconduct.
  • An employee on leave under the Family and Medical Leave Act (FMLA) notifies an employer of an intent not to return to work. (FMLA leave is not a qualifying event under COBRA.)
  • Voluntary or involuntary reduction of the employee's number of hours below the minimum number of  hours required to qualify for group health coverage.
  • An employer goes through a bankruptcy proceeding under Title 11 of the United States Code.

Spouses:

  • Voluntary or involuntary termination of  a covered employee's employment  for any  reason, unless the employee is let go because of  gross misconduct.
  • Covered employee is subject to voluntary or involuntary reduction of  number of  hours below the minimum number of hours required to qualify for group health coverage.
  • Covered employee and spouse become divorced or legally separated.
  • A covered employee becomes entitled to Medicare benefits and no longer qualifies for the group plan.
  • The death of a covered employee.

Domestic Partners or Significant Others:

  • COBRA does not apply to significant others or domestic partners even if they have been covered under the plan.

Dependent Children:

  • Loss of dependent child status under the plan rules which basically means the child becomes older than the age limit described in the health insurance policy.
  • Voluntary  or involuntary termination of  a covered employee's employment for  any  reason, unless the employee is let  go because of  gross misconduct;
  • Covered employee is subject to voluntary  or involuntary reduction of  number of hours below the minimum number  of  hours required to qualify for group health coverage.
  • The death of a covered employee

To Learn More

Which Employers Are Covered By COBRA?

The federal law only applies to employers with 20 or more employees. Most states have laws that expand similar coverage to smaller employers.

COBRA applies to:

  • Private employers in all types of businesses without exception and.
  • State and local governments.

COBRA does not apply to:

  • Churches and religious organizations, which are exempt from the law.
  • Federal employees -- who are covered under a separate, similar law.

To determine if an employer has 20 or more employees:

  • Part-time workers are counted in proportion to their hours compared to full-time. For example, for COBRA purposes, an employee who works half of their normal work week will count as 50% of an employee towards the minimum of 20.
  • If an employer has more than 20 employees during only a part of a year: An employer is considered to have less than 20 employees during a particular calendar year if it had fewer than 20 employees on at least 50 percent of its typical business days during that year.

IF your employer is not covered under COBRA, it may be covered under a state, so-called "mini COBRA" law. For more information, see The State Laws.

What Insurance Is Covered Under COBRA?

  • In general, the health insurance coverage which is continued under COBRA is tied to the employer's current coverage rather than the coverage that existed on the date you stopped working or other qualifying event occurred.
  • The COBRA continuation coverage you are offered must be identical to that provided to your former co-workers who did not lose coverage. If, for example, your employer increases coverage for your co-workers after you stop working, your coverage is increased just like everyone else's. Unfortunately, if the coverage for current employees decreases, the employer also has the right to decrease your coverage.
  • If the employer changes health plans, the coverage for anyone on COBRA continuation must be changed as well.
  • If the employer offers an open enrollment period with the opportunity to switch plans without medical questions or a physical exam, you must also be given the option to switch plans. 

COBRA does not apply to:

  • Self-insured plans
  • Medicare supplement only plans
  • Dental care only plans 
  • Vision only plans.
  • Group life insurance
  • Group disability insurance

Covered health insurance includes:

  • Health
  • Dental
  • Vision
  • Prescription drug
  • Mental health
  • Other medical type coverage such as drug coverage, even if they are separate from the health insurance.

Paying For COBRA

Generally, employees pay 100% of a COBRA health insurance premium - plus your employer is entitled to charge an extra 2% of the premium to cover the employer's administrative costs. Here is an example:

  • Assume the health insurance premium is $100 a month and that as an employee, you only paid 20% of the premium ($20). The employer paid the rest.
  • You now have to pay the entire $100 a month.
  • In addition, your ex-employer can charge up to $2.00 extra a month for administrative costs.
  • In sum,under COBRA, you may now have to pay $102. a month. (Keep in mind the good news: you continue to have health insurance for your health condition with no question about new pre-existing condition limitations).

The amount you pay is the current monthly cost of the coverage. The amount of the premium is not limited to the amount of premium only when you were working. If your employer receives an increase in premium, that increase may be passed along to you, plus the 2% administrative charge.

The premium payments must be made no later than the end of the grace period, usually 30 days after the premiums are due. This is very important. If coverage is terminated for nonpayment of premium, there is no right to reinstatement.

You are not required to maintain supplemental benefits such as dental or vision coverage. You don't have to pay for them if you choose not to. 

Payments are generally made to the ex-employer which in turn pays the insurer. Your employer may use a COBRA administrator to collect payments from you, which are then sent to the insurance company.  

If you receive Trade Adjustment Assistance benefits or are between the ages of 55 And 65 and receive pension payments from the Pension Benefit Guarantee corporation, you may qualify for a federal program known as HCTC.  HCTC pays 80 percent of health insurance premiums for people who qualify. For information, see: HCTC: Eligibility Requirements and How to Receive the HCTC offsite link.  

How To Apply For COBRA If You Stop Working

Step 1: Employer Notice

Your employer or plan administrator must notify the health plan administrator (which is sometimes the employer) that a COBRA qualifying event has occurred within 30 days of the event. The plan then must notify you within 14 days of your right to continued coverage.

When you stop working (or know ahead of time that you are about to stop):

  • Ask your employer for the COBRA notice.
  • If your employer insists on mailing the notice to you:
    • Ask for a date when to expect the notice.
    • Make note of the date
    • If you don't receive the notice, follow up with your employer and, if there is one, the Plan Administrator.

Step 2: Employee Notice to Employer or Plan Administrator

You must notify the employer or plan administrator that you want to continue health coverage within 60 days after the date you stopped working or the date you're notified of your rights, whichever is later.

Step 3: Pay the first premium

You have up to 45 days after giving the COBRA enrollment form to your employer or plan administrator to make the first premium payment, which includes premiums back to the date when the regular group coverage ended. 

Step 4: If you are "Disabled" when you stop work

Start looking at the requirements for a "disability" as defined by Social Security for purposes of Social Security Disability Insurance (SSDI) even if you don't think you're going to need COBRA beyond the initial 18 months. 

How To Apply For COBRA Due To Divorce

Step 1: Notify Your Employer

It is your duty to promptly notify your employer of your divorce within sixty days of the divorce. When you give your employer notice, confirm the current mailing address for your former spouse.

Step 2: Employer Notice

Your employer must give your former spouse written notice of his or her rights under COBRA within 14 days after being notified.

Step 3: Former Spouse's Notice To Employer Or Plan Administrator

Your former spouse must notify the employer or plan administrator that he or she wants to continue health coverage within 60 days after the date of your divorce or the date he or she is notified of his/her COBRA rights, whichever is later.

Step 4: Pay the first premium

Your former spouse has up to 45 days after giving the COBRA enrollment form to your employer or plan administrator to make the first premium payment, which includes premiums back to the date of the divorce.

How To Apply For COBRA Due To A Child Coming Of Age

Step 1: Notify Your Employer

It is your duty to promptly notify your employer of your child coming of age, within sixty days of the event. When you give your employer notice, confirm the current mailing address for your now adult child.

Step 2: Employer Notice

Your employer must give your child written notice of his or her rights under COBRA within 14 days after being notified.

Step 3: Adult Child's Notice To Employer Or Plan Administrator

Your child must notify the employer or plan administrator that he or she wants to continue health coverage within 60 days after the date of his or her coming of age or the date he or she is notified of his/her COBRA rights, whichever is later.

Step 4: Pay the first premium

Your child has up to 45 days after giving the COBRA enrollment form to your employer or plan administrator to make the first premium payment, which includes premiums back to the date the child came of age.

Six Steps To Take While You Are On COBRA

Step 1. PAY YOUR PREMIUMS PROMPTLY!! Your health insurance depends on it.

Remember, once cancelled for nonpayment there is no reinstatement of coverage. 
Keep in mind that the employer is probably only keeping you on the health plan because of the legal requirement. If you're incurring claims, your employer and the insurance company would be very happy to lose you as a covered person, and will likely do so at the first opportunity. 

  • To make payments without having to do the work each month, ask the plan administrator if they will withdraw funds from your bank account automatically. If not, have the premium paid automatically from your bank account through on-line banking.
  • As an alternative, if the plan administrator will allow it, pay two months premium up-front. You will then always be a month ahead and don't have to worry whether the check is received before the grace period expires.
  • If you send premium payments by check, rather than rely on receiving bills for the monthly payments, keep the payment date on your calendar. It is as important as any medical appointment.
  • Make arrangements now to insure payments are not missed if you travel, or become incapacitated.

Step 2. Be sure to give any change of address to the plan administrator, whether the administrator is the employer or an outside firm.

Step 3. Stay in touch with the plan administrator and your former co-workers so that you are alerted to any changes in benefits or insurance carriers as soon as possible.

  • If the group plan is changed, your coverage will automatically change as well since for these purposes your coverage is still part of the group.
  • If the employer changes to a new plan, the law requires the employer to switch your coverage as well. However, oftentimes people who no longer work for a firm are forgotten. This can lead to misunderstandings of what is covered or delays in getting on the new plan.

Step 4. Maintain a log or record of your payments.

  • List each payment, the date it was sent, the check number, the month that the premium covers, and whether it cleared the bank.
  • Keep all receipts if you send payments Return Receipt Requested. If there is ever a mix-up at the administrator, which does often happen, you'll be able to reconstruct your payment history.

Step 5. Review your coverage during each open enrollment period.

  • You can change coverage to a plan that may be better for your changing circumstances just as an active employee can. For help choosing the best policy for you, see our Health Insurance Evaluator

Step 6. Plan for termination of COBRA protection.

  • At the end of COBRA there are opportunities to continue coverage in one form or another, such as Medicare, a HIPAA Conversion Plan, purchasing insurance in a state that guarantees issue, purchasing insurance from a pool, or from a new employer's health plan.
  • Make an alert in your diary two to three months before your coverage ends to think about and decide which health coverage to obtain when your health insurance ends.
  • Apply for the new coverage at least 4 weeks before the end of COBRA or the COBRA extension so the new coverage will be waiting for you. Lapses in coverage may cause you to lose coverage. If all else fails, see our article on obtaining health insurance.

NOTE: If you are on disability, learn what to do in the event there is an investigation about whether you continue to be disabled. For information, click here.

How To Extend COBRA Coverage Because Of A "Disability"

The law allows an extension of health coverage beyond the initial 18 months if you have a "disability" at the time you stop work or experience another qualifying event. You can only get the extension if Social Security certifies that you are "disabled."

To qualify for this extension, during the first 18 months of COBRA, you must:

  • Apply to the Social Security Administration for Social Security Disability Income (SSDI)
  • Be declared to be disabled by the Social Security Administration
  • Have Social Security declare that the Onset Date (Social Security terminology for the date your disability started) of your disability was within sixty days of your losing coverage; and
  • Deliver a copy of the SSDI Notice of Award letter to the health plan administrator within sixty days after you receive it and during the 18 month COBRA period.

To get the extension, consider the following steps:

Step 1: Apply for Social Security Disability Insurance (SSDI) right away.

  • Although there is a 5 month waiting period before SSDI payments start, do not wait until the end of the waiting period to apply. Gathering the necessary information and processing a claim takes time. If your claim is denied, you will have time to file at least one appeal, and maybe more.
  • If Social Security has not made a decision about your disability status before the end of the 18 months of regular COBRA, then there is no way to extend the coverage even if Social Security later approves your claim.
  • At the time of application, tell Social Security that you have COBRA so they will expedite the claim.
  • To learn about applying for SSDI, see: Applying For SSDI.

Step 2. When you apply for SSDI, keep in mind that the date your disability began must be within 60 days of the loss of your employer-sponsored health insurance coverage.

  • If you are applying for SSDI some months after leaving work, make sure you and your doctor show that your inability to work because of your health condition started back at the date of your qualifying event, or as close to it as you can.

Step 3. You must present your SSDI notice of award letter to the plan administrator within 60 days of receiving it and during the initial 18 months of your COBRA coverage.

  • If you mail the award letter, mail by certified mail. Include a cover letter requesting confirmation that you qualify for the extension.
  • SAMPLE COVER LETTER TO CLAIM DISABILITY EXTENSIONYour address

Date

Name and address of addressed party

Dear XXXX(Administrator/Employer):

Enclosed is a copy of the Notice of Award from the Social Security Administration.  You will see that Social Security declared the onset date of my disability to be XX/XX/XXXX.

This should qualify me for the extension of my health insurance for an additional eleven months.

Please confirm to me in writing that you have received a copy of the Award and that you are extending my COBRA coverage.

Thank you,

Your name

  • If you are late getting the Social Security Disability letter to the employer, and the employer agrees to look at it, send the Social Security award letter with a cover letter, but don't be specific about the details. Just say something general, such as: Here's the award from Social Security. Please send written confirmation that I qualify for the COBRA extension.
  • If you deliver Social Security's award letter in person, get a receipt. Ask for written confirmation that you qualify for the extension.
  • Keep a copy of the award letter and cover letter for your files.
  • Whether you request the extension in writing or in person, don't mention how much the employer can charge you.  Some employers aren't aware they can add-on a surcharge. It's not your job to educate them.

Step 4. Ask for immediate written confirmation from your employer or plan administrator of your extended coverage. 

  • If the employer wants to challenge your request at a later date, you have time to argue the matter while you still have insurance. Don't wait until COBRA ends to have this battle if there's going to be one. 
  • Also, keep in mind that during the extension period, your premiums can jump up to 150% of the premium. For example: if you were paying $150 per month for COBRA coverage, it could jump to $225 per month for months 19 through 29 of your COBRA coverage.   To figure out what your premium will be, just multiply your COBRA premium by 1.5.

Should I Elect COBRA?

Before deciding to take COBRA, consider all other health coverage for which you may be eligible. For example:

  • Health insurance through a new employer
  • Health insurance through a spouse or partner
  • Health insurance through a group to which you belong, such as a professional or fraternal organization
  • Coverage through Medicare or Medicaid.  
  • Health insurance through the health insurance marketplace offsite link. The Affordable Care Act prohibits insurers from discriminating against people with existing or prior health conditions. The result is you not only are eligible for coverage, but you are charged the same rates as people with no health condition. NOTE: Once you have enrolled in COBRA, you cannot switch to a marketplace plan until the next open enrollment period.

NOTE: If you become eligible for other group coverage or from Medicare, your COBRA coverage can be cut off. This means that in most situations you would have to decline the other coverage if you decide that you prefer the COBRA coverage.

When deciding which alternative is best for you, consider:

  • When would the other coverage take effect?
  • Costs you will have to pay.
    • How much premium would you pay for COBRA and for the other coverage?
    • How much would you pay for co-pays and other costs you may have to incur? 
  • Compare other features which are important to you. For example:
    • Under the other plan, would you be able to see your current doctor(s)?
    • Are your medications on the plan formulary?
    • Do you need prior approval under one plan but not the other?
    • The reputations of the two companies when it comes to paying claims.
    • Whether there is assistance offered by the insurance company when making treatment and other medical decisions.
    • Do you have the right to purchase individual health insurance if the group coverage ends?

NOTE: In case you find that you cannot afford any health insurance even with the Affordable Care Act subsidy: for information about getting health care without insurance, see:Uninsured.

What To Do If You Miss COBRA Deadlines

If you miss a deadline, it's worth trying to fix the situation.

If you're late in providing the Social Security Award Letter to the Plan Administrator:

  • If you didn't get your Social Security disability award letter to the employer on time, consider calling the employer Human Relations department or person. Before the call, prepare how to explain the delay -- hopefully due to specific things that happened, or didn't happen, at Social Security. Start the conversation by saying something like: "I have heard that because I'm disabled, that I can extend my COBRA for another eleven months. How do I do that?" Many employers don't know the rules, and even if they do, there have been employers who will extend the coverage with nothing more than a phone call. You are not likely to find flexibility or ignorance of the law from a professional COBRA administrator -- but it's still worth the call.
  • If you get resistance, you can fall back on why Social Security delayed the situation.
  • If all else fails, remind the person as a human being about your health condition.
  • If you still get a no, try speaking with a supervisor. State your case, especially what you're going through. Rules can be waived if the right person wants to waive them.

Late Premium Payment:

  • Either mail the payment or, if the payment goes to the employer, consider delivering it personally. If the payment is accepted, your coverage will continue. If you deliver the payment personally to the employer (and get a written receipt) they may find it harder to tell you face-to-face that your coverage is ended -- especially if you precede handing over the check with an update about the medical problems you're having. Hopefully the employer will be lenient and try to work with you.

Late Notifying About A Change in Status of Your Spouse or Dependent:

  • If it happens, explain to your employer the reason for your delay and ask the employer to help you get the situation corrected. The longer you have been with the employer and the more valuable you are to the employer, the more likely you'll get a "yes." 
  • Keep in mind that unless your spouse or child is ill, their presence on the employer's plan is not likely to have a negative impact financially.

Events Which Can Terminate COBRA

Coverage under COBRA ends if:

  • You fail to pay the premium before the end of the grace period -- and there is no reinstatement of coverage either.
  • The employer ends group health insurance coverage for all workers. For example, if the employer stops offering health insurance to the active employees or goes out of business. As long as the employer covers any employees under a health insurance plan, even if it's not at your location or not the same division or subsidiary, you must be offered continuation under the existing plan.
  • You, as an employee or as a dependent, become covered by Medicare or by other group insurance that covers you, so long as the new coverage does not have a limitation or exclusion based on a pre-existing condition. However, if you become entitled for COBRA continuation after you become eligible for Medicare, you may continue them both. For example, if you work past age 65, start Medicare at 65, then stop working at age 67, stopping work would trigger 18 months of COBRA. If, however, you stopped working at age 64 and started your COBRA coverage, instead of having COBRA continuation for 18 months, your right to continue COBRA would end when you turn 65 and become eligible for Medicare.




How To Enforce Your Rights Under COBRA

COBRA is enforced jointly by the Department of Labor and the Internal Revenue Service.

The Internal Revenue Service imposes penalties for violation of the law.

If you need help enforcing your rights, contact your local office of the Employee Benefits Security Administration of the U.S. Department of Labor. You can find the contact information for the office nearest you at: www.dol.gov/ebsa/aboutebsa/org_chart.html#section13 offsite link.