Can you extend COBRA benefits past 18 months?
Asked by: Garnet Cronin | Last update: October 3, 2025Score: 4.3/5 (19 votes)
How do I extend my COBRA coverage beyond 18 months?
If you are entitled to an 18 month maximum period of continuation coverage, you may become eligible for an extension of the maximum time period in two circumstances. The first is when a qualified beneficiary is disabled; the second is when a second qualifying event occurs.
Can COBRA be extended beyond 18 months due to disability?
In certain circumstances, if a disabled individual and non-disabled family members are qualified beneficiaries, they are eligible for up to an 11-month extension of COBRA continuation coverage, for a total of 29 months.
How long can you continue COBRA coverage?
While COBRA is temporary, in most circumstances, you can stay on COBRA for 18 to 36 months.
Is COBRA still 18 months old?
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.
How to Renew COBRA Health Insurance After 18 Months : COBRA Insurance
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 grace period for COBRA payments?
After you are established on your COBRA coverage, ongoing monthly payments are due the first day of each month. There is a grace period of 30 days from the due date for ongoing monthly premium payments. If you mail your payment, it must be postmarked within the 30-day grace period.
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.
Can you stay on COBRA after getting a new job?
Yes, you can keep COBRA coverage even when your new employer offers health insurance. The decision to retain COBRA or opt for the new employer's plan depends on your personal circumstances, such as comparing benefits and costs. There's no federal mandate to cancel COBRA upon obtaining new job-based insurance.
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 COBRA be extended beyond 18 months in Texas?
The initial 18-month period of COBRA coverage may be extended up to 36 months for your dependents in the event of death, divorce or the loss of status as a dependent child during their initial COBRA eligibility period. For these situations, COBRA coverage cannot be continued beyond 36 months.
How does COBRA work for long term disability?
The COBRA continuation coverage may be extended if an individual is deemed disabled by the Social Security Administration (SSA) and the individual meets certain requirements. This allows a qualified beneficiary to remain covered under COBRA until they become eligible for Medicare.
What happens if I turn 26 while on COBRA?
Turning 26 initiates a special enrollment period, requiring you to find new coverage. Options include COBRA continuation, short-term insurance, marketplace plans, or employer-sponsored plans.
Is there a gap in coverage with COBRA?
If you elect COBRA continuation coverage instead of Medicare, you may have to pay a late enrollment penalty and may have a gap in coverage if you later decide you want Part B. If you enroll in Medicare Part A or B before your COBRA coverage ends, your plan may terminate your COBRA coverage.
How much does COBRA cost per month?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
What happens if I turn 65 while on COBRA?
In addition, a COBRA carrier may be able to bill you for any benefits paid by mistake when Medicare should have paid first. If you're already on COBRA when you become eligible for Medicare, you will lose your COBRA benefits and none of this applies to you.
How to stay on COBRA for 36 months?
Qualifying events can remove a partner, spouse, or dependent from a group healthcare plan. These beneficiaries are then eligible for COBRA coverage for up to 36 months. This includes the death of the covered employee, divorce, separation or annulment.
Can COBRA coverage be extended?
California Insurance Code (CIC) Section 10128.59 provides extension under Cal-COBRA for those who have exhausted their 18 months on federal COBRA (or longer in special circumstances) for a total extension that cannot exceed 36 months.
How long can a former employee stay on COBRA?
You can collect COBRA benefits for up to 18 months. This may be extended to 36 months under certain circumstances. If your employer has 20 or more employees, it must follow COBRA rules. COBRA coverage follows a "qualifying event".
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.
Is there a better option than COBRA?
Marketplace insurance, available through the Affordable Care Act, often offers more affordable premiums than COBRA. The cost difference can vary based on the chosen plan, location, and income, as subsidies may reduce premiums for marketplace plans.
How can I reduce my COBRA cost?
To reduce your COBRA insurance cost per month, one option is to see whether your employer offers other lower-cost plan options with a lower coverage level. This tradeoff could make sense if you're healthy. You can't switch plans immediately after losing your job.
Does COBRA end mid month?
For most, active coverage terminates at the end of a month and COBRA is effective on the first day of the next month.
What is the penalty for late COBRA notice?
The employer penalties for not complying with the COBRA:
The IRS can charge you $100 tax per day of noncompliance per person or $200 tax per day per family.
Can you pay for COBRA retroactively?
COBRA is always retroactive to the day after your employer coverage ends. So, you'll need to pay your premiums for that period too.