Can I get Cal COBRA if I quit my job?
Asked by: Dejon Reichel DVM | Last update: October 21, 2025Score: 4.4/5 (11 votes)
Are you eligible for COBRA if you voluntarily resign?
For “covered employees,” the only qualifying event is termination of employment (whether the termination is voluntary or involuntary) including by retirement, or reduction of employment hours. In that case, COBRA lasts for eighteen months.
Who is eligible for Cal COBRA in California?
Cal-COBRA applies to employers and group health plans that cover from two to 19 employees. (Note that Cal-COBRA also applies to employers with more than 20 employees when an employee has exhausted his or her 18 months of federal COBRA benefits.)
What happens to your health insurance when you quit your job?
If you leave your company, you will lose your coverage. Your HR will explain when the end date of your coverage is. You will not have to reimburse the health insurance for claims that they paid as long as you had active coverage for those dates of service.
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.
How to Handle Benefits and Insurance When You Quit Your Job
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 quitting a job considered a life-changing event?
Is losing or getting a new job a qualifying life event? Yes, if you lose your employer-sponsored health care, you're eligible for a Special Enrollment Period. There's no distinction between leaving your place of employment willingly, like in the case of resignation, or unwillingly, like with a layoff or firing.
How much does COBRA cost each month?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
When you resign from a job, what are you entitled to?
These benefits may include severance pay, health insurance, accrued vacation, overtime, unused sick pay, and retirement plans. Companies aren't obligated to provide severance pay. However, many employers do. Line up references before you leave.
Which one of the following is not eligible for Cal-COBRA?
Indemnity policies, PPOs, HMOs, and self-insured plans are all eligible for COBRA extension; however, federal government employee plans and church plans are exempt from COBRA.
Who sends Cal-COBRA paperwork?
Cal-COBRA administration may be handled by either the employer or a third-party administrator, but as the legal obligation still falls to the employer to comply with the law, all employers should make sure these administrative steps are being completed and done so in a timely manner.
What is mini COBRA in California?
Cal-COBRA, established under the California Continuation Benefits Replacement Act of 1997, extends health coverage continuation rights similar to federal COBRA but is specifically designed for employees of smaller companies with 2 to 19 employees.
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.
What is considered voluntary resignation?
Voluntary termination, also known as voluntary resignation, is when an employee resigns from or leaves their job of their own accord. They typically make this decision without any pressure from the employer and for various reasons, such as pursuing a new job opportunity, changing careers, relocating, or retiring.
Who is not a qualified beneficiary under COBRA?
(e) An individual is not a qualified beneficiary if the individual's status as a covered employee is attributable to a period in which the individual was a nonresident alien who received from the individual's employer no earned income (within the meaning of section 911(d)(2)) that constituted income from sources within ...
Can I get COBRA if I quit?
Whether you quit, get fired or are laid off, you may be able to choose your former employer's health plan under a federal law called COBRA. That stands for Consolidated Omnibus Reconciliation Act. It's available if: You were enrolled in an employer-sponsored medical, dental or vision plan.
What are the disadvantages of COBRA coverage?
- COBRA can be expensive, especially compared to the premiums you were paying before your qualifying event. ...
- COBRA does not apply to all employer-sponsored health plans—in particular, those organizations with fewer than 20 employees may have no requirements. ...
- Even if you get an extension, COBRA is only temporary.
How does COBRA work in California?
COBRA and Cal-COBRA
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. 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.
How long will my health insurance last after I quit?
COBRA. COBRA lets you keep your existing health insurance for up to 18 months for most people after you leave your job. You can qualify for COBRA regardless of whether you quit, were laid off or fired.
What happens if you quit your job suddenly?
Some employment contracts include stipulations where employees lose certain benefits if they quit without notice, such as unused vacation days. Carefully review any documents you signed when being hired, especially if you work on a contract.
Do other jobs know if you quit?
Most industries are pretty small: You should assume the hiring manager will find out why you left your previous job, even if the company has a policy against revealing that information officially.
Can employers deny COBRA?
If the former employee is considered an eligible plan participant, then he or she would be a qualified beneficiary and entitled to COBRA coverage unless the second exception (denial based on gross misconduct) is applied. Under COBRA, a person who has been terminated for gross misconduct may be denied COBRA.
Does COBRA coverage begin immediately?
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 is the loophole for COBRA coverage?
Understanding the 60-Day Loophole
It's not so much of a loophole, but two 60-day windows of time to remember. You have a 60-day window following the end of your employer-sponsored plan to select COBRA coverage or choose a new plan in the individual ACA marketplace.