Can I sue my employer for not offering COBRA?
Asked by: Mr. Paxton Hessel V | Last update: September 7, 2025Score: 4.5/5 (73 votes)
What happens if my employer doesn't offer me COBRA?
Employers who fail to comply with the COBRA requirements can be required to pay a steep price. Failure to provide the COBRA election notice within this time period can subject employers to a penalty of up to $110 per day, as well as the cost of medical expenses incurred by the qualified beneficiary.
What is the penalty for not sending COBRA notice?
Failing to adhere to COBRA rules can result in costly penalties. The Department of Labor may impose fines of $110 per day per qualified beneficiary for non-compliance with notice requirements, and the IRS can levy excise taxes for violations.
Can you sue a company for not offering COBRA?
In certain cases, yes, you can sue your employer for not offering COBRA. Employers are obligated to inform eligible employees about the availability of insurance coverage under COBRA and the requirement for employees to pay the full premium.
Is it illegal to deny a COBRA?
The employer's denial of COBRA coverage to the eligible qualified beneficiaries could result in daily penalties, litigation, reimbursement of unpaid claims and other related costs.
My Employer Did Not Give Me My COBRA Continuation Health Coverage - What Do I Do?
What happens if 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.
What is a COBRA violation?
Employers have numerous responsibilities under COBRA, including tracking employee notices and deadlines. All too often, employers fail to comply with these requirements. Some common COBRA violations include: Failure to supply initial notice to new employees. Failure to provide notice after a qualifying event.
Can I sue my employer for not providing health insurance?
It has an obligation to honor that commitment, even though the law does not require it to provide health insurance. Otherwise, an employee can sue the employer to enforce the contract.
What employers are exempt from 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.
Do you have to offer COBRA to employees who quit?
If the employee was covered under the group health plan the day before the qualifying event, the employee and their dependents will be eligible for COBRA regardless of whether the employee voluntarily resigned or was involuntarily terminated.
How long does HR have to send COBRA notice?
14-Day Notice Period
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.
Is COBRA a mandatory benefit?
COBRA (Consolidated Omnibus Budget Reconciliation Act of 1985) is a federal law that requires employers of 20 or more employees who offer health care benefits to offer the option of continuing this coverage to individuals who would otherwise lose their benefits due to termination of employment, reduction in hours or ...
Can I waive COBRA?
If you waive COBRA coverage during the election period, you must be permitted later to revoke your waiver of coverage and to elect continuation coverage as long as you do so during the election period.
Is it optional to offer COBRA?
COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.
Does not paying COBRA affect credit?
Note: we do not report non-payment to credit bureaus. 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.
What is the time limit for COBRA?
Periods of Coverage
In most cases, COBRA coverage for the covered employee lasts a maximum of 18 months. However, the following exceptions apply: 29-Month Period (Disability Extension): Special rules apply for certain disabled individuals and family members.
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.
What is the average cost of cobra insurance per month?
COBRA coverage is not cheap.
A COBRA premium can cost on average $400 to $700 a month per person.
Is COBRA a federal law?
Federal COBRA is a federal law that lets you keep your group health plan when your job ends or your hours are cut. Federal COBRA requires continuation coverage be offered to covered employees, their spouses, former spouses, and dependent children.
Can I sue my employer for not giving me benefits?
Yes, you may have recourse if your employer promised you vision and dental benefits upon your last contract negotiation but never enrolled you in those benefits. The specific steps you can take will depend on the terms of your employment contract and the laws in your state.
What if your employer does not offer a health insurance benefit?
If your employer doesn't offer you insurance coverage, you can fill out an application through the Marketplace. You'll find out if you qualify for: A health insurance plan with savings on your monthly premiums and out-of-pocket costs based on your household size and income.
What is the penalty for not offering health insurance to employees?
A penalty of $2,970 (for 2024) per full-time employee minus the first 30 will be incurred if the employer fails to offer minimum essential coverage to 95 percent of its full-time employees and their dependents, and any full-time employee obtains coverage on the exchange.
What is the penalty for not offering a COBRA?
The IRS can charge you $100 tax per day of noncompliance per person or $200 tax per day per family. If the IRS has chosen to audit you and you have not corrected the violation, it is possible that you could have a $2,500 fine per beneficiary or the daily tax listed above.
Does an employer have to offer COBRA if you are fired?
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) requires most employers with group health insurance plans to offer their employees the opportunity to continue their health coverage under their employer's plan even after they have been terminated or laid off or had another change in their employment ...
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.