Can I still use COBRA if I quit my job?
Asked by: Chad Olson Sr. | Last update: July 21, 2025Score: 4.6/5 (63 votes)
Are you COBRA eligible if you 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.
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.
How does COBRA work after termination?
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.
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 I Continue My Health Insurance After Quitting My 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.
Can I stay on COBRA when I get a new job?
You can keep COBRA coverage when you get a new job, even if your new employer offers you a new health plan. However, COBRA will likely be much more expensive. You may want to keep COBRA coverage if your new employer's health plan doesn't include your preferred healthcare providers.
What are the requirements for COBRA termination notice?
The notice must be given as soon as practicable after the decision is made, and it must include the date coverage will terminate, the reason for termination, and any rights the beneficiary may have under the plan or applicable law to elect alternative group or individual 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.
How long does it take for a COBRA to kick in?
COBRA coverage timeline
The coverage starts the day the previous coverage ends. The employer's COBRA administrator is responsible for sending out an election notice with information about deadlines for enrollment. For example, if employment ends on April 25, COBRA will pick up where the group health plan ends.
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.
Does health insurance end the day you quit?
When does health insurance expire after leaving a job in California? Your health insurance may expire the day you leave your job, or at the end of that month. For instance, if you quit on January 10th, you may have coverage through January 31st. You'll need to find out what your employer's policy is.
Can I quit 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.
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 does COBRA work if I quit my job?
COBRA coverage lets you pay to stay on your job-based health insurance for a limited time after your job ends (usually 18 months). You usually pay the full premium yourself, plus a small administrative fee. Contact your employer to learn about your COBRA options.
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.
What is the 60 day COBRA loophole?
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.
Who is not eligible for 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. Individual health insurance is also exempt from COBRA extension.
Who pays for COBRA after termination?
(California passed a similar law known as “Cal-COBRA.”) Under COBRA, the group plan health insurance plan made available to terminated workers provides the exact same benefits as they would receive if they were still a member of the group, except that the employees have to pay the employer's cost of providing the ...
Who sends out COBRA paperwork?
The HR office must provide the COBRA Election Notice and Election Form to qualified beneficiaries within 14 days from the date of the qualifying event or loss of coverage, or when the HR office is notified, whichever comes first.
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.
Is COBRA 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.
How to stay on 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 ...