Can I ask new employer to pay for COBRA?
Asked by: Dr. Demetris Kessler | Last update: August 6, 2025Score: 5/5 (44 votes)
Who pays for COBRA after termination?
COBRA and Cal-COBRA
COBRA allows former employees, retirees, and their dependents to temporarily keep their health coverage. If you get COBRA, you must pay for the entire premium, including any portion that your employer may have paid in the past.
Can a company refuse to offer COBRA?
You do not have to offer COBRA coverage to any of the following: an employee who is not yet eligible for your group health plan. an eligible employee who declined to participate in your group health plan. an individual who is enrolled for benefits under Medicare.
Do I have to pay COBRA right away?
You can be required, however, to make an initial premium payment within 45 days after the date of your COBRA election (that is the date you mail in your election form, if you use first-class mail). Failure to make any payment within that period of time could cause you to lose all COBRA rights.
What is the COBRA loophole?
If you decide to enroll in COBRA health insurance, your coverage will be retroactive, meaning it will apply to any medical bills incurred during the 60-day decision period. This loophole can save you money by avoiding premium payments unless you actually need care during this time.
COBRA Insurance | What You Need to Know
How does COBRA work if I get a new job?
COBRA coverage doesn't automatically end when you get a new job, but you can choose to terminate it once your new employer's health insurance takes effect. If there's a waiting period before your new coverage starts, COBRA can act as a temporary safety net, ensuring you don't experience a gap in health insurance.
What happens if you never pay COBRA?
If you fail to make any payment before the end of the initial 45-day period, the plan can terminate your COBRA rights.
Can my new employer pay my COBRA premiums?
Yes, an employer can pay all or part of a former or current employee's COBRA premiums. Employers may do so as a means to assist an employee during a merger, acquisition, layoff, termination, temporary or permanent disability, retirement, or as part of a recruitment strategy.
How to waive COBRA coverage?
If you are currently receiving COBRA coverage for which a premium is being paid and you wish to waive future coverage, you can simply refrain from paying the COBRA premium for that coverage period.
How much does COBRA typically cost per month?
COBRA coverage is not cheap.
A COBRA premium can cost on average $400 to $700 a month per person.
What if my employer didn't send me a COBRA?
What If I Did Not Receive a COBRA Election Letter? We recommend working with the employer's human resources department. Call and ask them to resend the health insurance continuation election form. They may refer you to their third-party administrator.
Why is COBRA so expensive?
Why is COBRA more expensive than employer-sponsored insurance? COBRA is more expensive because the individual is responsible for the entire premium amount without the employer's financial contribution that is provided during active employment.
Are COBRA payments tax deductible?
Are my COBRA premiums deductible? Yes they are tax deductible as a medical expense. There isn't necessarily a “COBRA Tax Deduction”. You can only deduct the amount of COBRA medical expenses on your federal income tax in excess of 7.5% of your Adjusted Gross Income and then only if you itemize deductions.
Can an employer deny COBRA coverage?
Gross misconduct provides a basis for denying COBRA coverage to the employee and to the employee's dependents.
Are COBRA payments reported on W-2?
In general, each employer providing coverage will have to report the prorated cost on the employee's W-2. If the employee is terminated, the employer can also include the COBRA payment amounts paid by the employee after termination.
Who do I pay my COBRA premiums to?
When on COBRA continuation, you'll pay the premium out-of-pocket. Traditionally, the former employer will process the monthly premium payments they receive by mail in the form of a check or money order, made payable to the employer.
Can I negotiate COBRA premiums?
Your employer may subsidize COBRA, either pursuant to a company-wide plan or an individual severance agreement that you negotiate.
Can I just stop paying COBRA?
If you stop paying your COBRA premium and lose coverage, you will not be eligible for special enrollment through Covered California. You will only qualify for special enrollment if: Someone else responsible for sending your COBRA premium payments (for example, your former employer) fails to do so on a timely basis.
How do I decline COBRA?
- Terminate coverage on your online account. For instructions, see How to terminate coverage in your COBRA online account.
- Submit a completed COBRA Benefits Termination Form.
- Do not remit the premium payment for the month you no longer want coverage.
How does COBRA work when switching jobs?
COBRA is temporary. It gives you time to find another health plan or covers you until your next employer plan kicks in, like when you start a new job. Federal coverage lasts 18 months but may extend up to 36 months if you have a second “qualifying event.” For instance, a divorce or death of a spouse.
Can you retroactively pay for COBRA?
This period is measured from the later of the date of the qualifying event or the date the COBRA election notice is provided. COBRA coverage is retroactive if elected and paid for by the qualified beneficiary.
Who pays for COBRA coverage?
Group health coverage for COBRA participants is usually more expensive than health coverage for active employees, since usually the employer pays a part of the premium for active employees while COBRA participants generally pay the entire premium themselves.
How late can you pay a COBRA?
The COBRA law allows for a 30-day grace period, after the premium due date, for paying or postmarking your premium.
What if my employer never sent me COBRA?
If you are eligible for Federal COBRA and did not get a notice, contact your employer. If you are eligible for Cal-COBRA and did not get a notice, contact your health plan. If you miss the deadline, you may lose the chance to sign up for Federal COBRA or Cal-COBRA. Call the Help Center if you have any questions.
Can COBRA premiums be refunded?
Request a Refund for Amounts Paid in COBRA Premiums Exceeding Federal Employment Tax Liability: The employer may claim the Credit through an employment tax refund on the applicable employment tax return, generally Form 941, Employer's Quarterly Federal Tax Return.