Can I cancel COBRA if I get a new job?
Asked by: Alejandra Hodkiewicz | Last update: October 12, 2025Score: 4.1/5 (50 votes)
How do I cancel my COBRA when I get a new job?
Notify your former employer or plan administrator in writing saying you want to terminate coverage. They should send you a letter with the coverage dates for your records.
Does COBRA end if I get a new job?
Yes. The coverage election remains with the employee (you), so you can stay on COBRA for the allotted time (18mos + qualifying extensions) regardless of whether a new employer offers health benefits or not.
Can I stop a COBRA whenever I want?
You can cancel COBRA at any point in the year but cancelling cobra doesn't open a special enrollment in the marketplace.
Is canceling COBRA considered a qualifying event?
However, you won't qualify if you decide to end COBRA early and are paying the full benefit cost yourself. You also don't qualify if you lose your COBRA coverage because you didn't pay your premiums. Remember, you don't need a special enrollment period if you voluntarily end COBRA during open enrollment.
Understanding your health insurance options if you leave your employer
Can I drop COBRA at any time?
Yes, you can cancel COBRA coverage at any time. However, be aware that cancellation does not trigger a special enrollment period for new health insurance.
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.
Can you change your mind about COBRA?
It's also important to know that if you decide to drop or forgo COBRA and enroll in a Covered California plan, you cannot change your mind and go back to COBRA.
When can an employer terminate COBRA coverage?
Premiums are not paid in full on a timely basis; • The employer stops maintaining any group health plan; • A qualified beneficiary begins coverage under another group health plan; • A qualified beneficiary becomes entitled to Medicare benefits; or • A qualified beneficiary engages in fraud or other conduct that would ...
Why is COBRA so expensive?
COBRA coverage is not cheap.
Why? Because you're now responsible for paying your portion of your health insurance: The cost your employer contributed to your premium, in addition to the 2% service fee on the cost of your insurance.
How does COBRA work after resignation?
Regardless if you quit, got fired, were laid off or retired you have the right to continue the employer's group health insurance for up to 18 months. You will coordinate this benefit with the human resources department of the employer or their third-party administrator.
Is COBRA cheaper than marketplace?
Both COBRA and ACA Marketplace plans have their advantages. COBRA lets you keep your exact employer-based plan but is often more expensive. ACA plans may be more affordable, especially with subsidies, but require choosing a new plan. The best choice depends on your financial situation and healthcare needs.
How do you keep a COBRA for 36 months?
Second Qualifying Event - If you are receiving an 18-month maximum period of continuation coverage, you may become entitled to an 18-month extension (giving a total maximum period of 36 months of continuation coverage) if you experience a second qualifying event that is the death of a covered employee, the divorce or ...
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.
Do you get a refund if you cancel COBRA?
Premium payments for your COBRA health insurance continuation coverage, will coverage for a full month. Major medical plans will most often start on the first of the month and end on the last day. Generally, there are no refunds when you cancel your plan early.
Can I decline COBRA?
You must decide to accept or reject COBRA coverage during a certain time period (usually 60 days after your employer notifies you). You must pay your monthly premiums or you can lose your coverage. Once you have used up all your COBRA benefits, you may be able to get an extension of coverage under Cal-COBRA.
Is cancelling COBRA a qualifying event?
No, stopping payment for COBRA coverage is not considered a qualifying event.
How long does an employee have to accept COBRA?
You have 60 days to enroll in COBRA once your employer-sponsored benefits end. Even if your enrollment is delayed, you will be covered by COBRA starting the day your prior coverage ended.
What are the rules for COBRA coverage?
- Your group health plan must be covered by COBRA.
- A qualifying event must occur.
- You must be a qualified beneficiary for that event.
Can you Unenroll from COBRA at any time?
You may voluntarily terminate your coverage prior to the last day of COBRA for any reason. There are three ways to do so: Terminate coverage on your online account. For instructions, see How to terminate coverage in your COBRA online account.
How do you escape a COBRA?
What to do if you spot a cobra. The experts are unanimous: Leave the snake alone. “Move deliberately and calmly away from the snake – while keeping an eye on its location if possible,” Gray said. “Move to an open area free of brush and rock outcrops if possible” if you're outdoors.
How much does COBRA typically cost per month?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
What disqualifies you from COBRA?
Why would an employee not qualify to enroll in Cal-COBRA? The employee is enrolled in or eligible for Medicare. The employee does not enroll within 60 days of receiving the notice of eligibility from the employer. The employee is covered by another health plan.
What is the 105 day COBRA loophole?
So, if you maxed out the 60 day election period plus the 45 day payment period, you could actually go 105 days without paying for the coverage.
Is COBRA coverage worth it?
“If you're close to meeting your deductible on your current insurance plan and you have high health care costs, it may be worth it to temporarily stay on your COBRA plan,” explains Donovan. The same holds true if you're far into your employer plan's year and have already met your deductible.