COBRA 101

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.

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