Can I waive a COBRA?
Asked by: Estefania Blick | Last update: December 29, 2025Score: 4.7/5 (60 votes)
How do I 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.
Can you opt out of COBRA at any time?
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.
How to reject COBRA coverage?
- 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.
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.
If I waive COBRA coverage during the election period, can I still get coverage at a later date?
What happens if you don't offer COBRA?
DOL ERISA Penalties — An employer is liable up to an additional $110 per day per participant if they fail to provide initial COBRA notices. ERISA can also hold any fiduciary personally liable for non-compliance.
Can you change your mind if you decline 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.
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 avoid Cobra insurance?
- 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.
- The employee is fired for gross misconduct.
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.
Can I cancel COBRA and get a refund?
Generally, there are no refunds when you cancel your plan early. You may contact your administrator or your past employer for specific insurance payment information.
How does COBRA affect taxes?
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 I switch from COBRA to private insurance?
You can only drop COBRA and sign up for a Marketplace plan and premium tax credits during Open Enrollment. You will have to drop your COBRA coverage effective on the date your new Marketplace plan coverage begins.
Can you opt out of COBRA anytime?
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.
Can an employee waive COBRA rights?
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. Then, the plan need only provide continuation coverage beginning on the date you revoke the waiver.
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 ...
What if I can't afford COBRA?
Instead of enrolling in COBRA continuation coverage, there may be other more affordable coverage options for you and your family through the Health Insurance Marketplace, Medicaid, or other group health plan coverage (such as a spouse's plan) through what is called a “special enrollment period.” Some of these options ...
Is there a cheaper option than COBRA?
Marketplace insurance, available through the Affordable Care Act, often offers more affordable premiums than COBRA.
Do I have to waive COBRA coverage?
Yes, you can waive your right to COBRA coverage. If you waive COBRA continuation coverage before the due date, you may change your mind if you submit a completed election form before the due date.
How much does COBRA typically cost per month?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
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.
Can you not offer COBRA?
Employers With 19 Or Fewer Employees Do Not Have To Offer Federal COBRA. The Federal COBRA Act exempts small businesses with 19 or fewer employees. In response, many states have passed Mini-COBRA laws. These laws are designed to cover all workers in their state.
Does COBRA reset your deductible?
It is not a separate policy—it's a continuation of access as if you remained actively eligible. Because your coverage is “continued,” your deductible won't reset until the new plan year, etc. The difference is your cost for coverage because the employer no longer contributes toward meeting your premium obligation.
Does COBRA kick in immediately?
An employee eligible for COBRA insurance must opt for it within 60 days of their employer-sponsored insurance termination date. The coverage starts the day the previous coverage ends.
Does COBRA have a grace period?
Is there a grace period? The COBRA law allows for a 30-day grace period, after the premium due date, for paying or postmarking your premium. Please note, 30 days does NOT mean 31 days. There is no way to extend the deadline, even if you are out of town or forget to make your payment.