Can you elect COBRA and not pay?
Asked by: Eloy Morar | Last update: October 15, 2025Score: 4.4/5 (33 votes)
What happens if I elect COBRA but don't pay?
There is no grace period if you're late paying your initial COBRA premium payment. 3 If it isn't paid on time (ie, within 45 days of electing COBRA), you lose your right to have COBRA coverage; you'll have to find other health insurance options or you'll be uninsured.
Do I have to pay for COBRA coverage?
If you get COBRA, you must pay for the entire premium, including any portion that your employer may have paid in the past. This means your payment is often more expensive than what you paid as an employee. You can collect COBRA benefits for up to 18 months. This may be extended to 36 months under certain circumstances.
Can I stop paying for COBRA?
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 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.
Should I go on Cobra Insurance?
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.
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.
Can I decline a COBRA?
Decide not to participate in COBRA and apply for special enrollment through Covered California. Because you will be newly uninsured, you will qualify for special enrollment in a Covered California health insurance plan outside of the annual open-enrollment period.
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.
Why is COBRA so expensive?
Why is COBRA more expensive than employer-sponsored insurance? COBRA is more expensive because the individual is responsible for the entire premium amount without the employer's financial contribution that is provided during active employment.
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.
Is COBRA ever free?
Unemployed Americans who lost their jobs in the last 18 months may qualify for free health insurance coverage through the Consolidated Omnibus Budget Reconciliation Act, commonly known as COBRA.
How does a mini COBRA work?
Unlike federal COBRA, which applies to larger employers, Cal-COBRA ensures that employees of small businesses have the option to continue their health insurance for up to 36 months after leaving their job or experiencing a reduction in work hours.
Can I pay for just one month of COBRA?
However, if you only need COBRA coverage for a short period of time, such as one or two months, you can pay only for those months from the coverage loss date.
What if I can't pay my health insurance premium?
If you miss a monthly premium payment
Your health insurance company could end your coverage if you fall behind on your monthly premiums. A short period after your monthly health insurance payment is due to pay all owed premiums to avoid losing coverage.
Do employers ever pay for COBRA?
Yes, an employer can pay all or part of a former or current employee's COBRA premiums.
Is it worth paying for a COBRA?
While it may seem like a lot of money, COBRA may actually cost you less than what you'll pay on the open market. That's because you may still get your former company's group discount. You can also use a health savings account (HSA) to pay for your COBRA premiums. They're considered a qualified medical expense.
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.
Is COBRA cheaper than Obamacare?
COBRA costs an average of $599 per month. An Obamacare plan of similar quality costs $462 per month—but with the government subsidies available, the average cost of an Obamacare plan on HealthSherpa is less than $10 per month. But ultimately, it depends on your situation.
Can you cancel COBRA by not paying?
Failure to make payment in full before the end of a grace period could cause you to lose all COBRA rights.
How much does COBRA cost?
Your monthly COBRA premiums (or payments) will equal the total cost of the premium under your employer-sponsored health insurance, plus a 2% administration charge. If you've had insurance through your employer for a while, the price to continue that coverage on your own is going to sting.
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.
Does COBRA coverage begin immediately?
Assuming one pays all required premiums, COBRA coverage starts on the date of the qualifying event, and the length of the period of COBRA coverage will depend on the type of qualifying event which caused the qualified beneficiary to lose group health plan coverage.
Can I cancel COBRA and enroll in marketplace?
You can only drop COBRA and sign up for a Marketplace plan and premium tax credits during Open Enrollment.
How do you figure out COBRA cost?
If you want to figure this out on your own, ask HR how much your employer is contributing toward your monthly coverage. Then, check your pay stub to see how much you're contributing. After adding these figures, add another 2% (for the service fee). This will show you exactly how much you'll expect to pay for COBRA.