Can you keep COBRA if you start a new job?
Asked by: Greg Osinski PhD | Last update: May 27, 2025Score: 4.5/5 (55 votes)
Can I stay on COBRA after I start a new job?
Yes. The coverage election remains with the employee (you), so you can stay on COBRA for the allotted time (18mos + qualifying extensions) regardless of whether a new employer offers health benefits or not.
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.
How do I cancel my COBRA when I get a new job?
Notify your former employer or plan administrator in writing saying you want to terminate coverage. They should send you a letter with the coverage dates for your records.
What are the rules for COBRA coverage?
- Your group health plan must be covered by COBRA.
- A qualifying event must occur.
- You must be a qualified beneficiary for that event.
Avoid Major Problems by Being Cobra Compliant!
Are you eligible for COBRA if you resign?
You Can Get Health Coverage After You Quit
One avenue to explore is COBRA (Consolidated Omnibus Budget Reconciliation Act) insurance. This option allows you to retroactively continue with the same health plan you had under your most recent employer. Here's A Solution!
Can my new employer pay my COBRA premiums?
Yes, an employer can pay all or part of a former or current employee's COBRA premiums. Employers may do so as a means to assist an employee during a merger, acquisition, layoff, termination, temporary or permanent disability, retirement, or as part of a recruitment strategy.
How do you keep a 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 ...
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 you end a 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.
What is the 18 month rule for COBRA?
When Federal COBRA ends, eligible employees can buy 18 months additional health coverage under Cal-COBRA. All qualified beneficiaries are generally eligible for continuation coverage for 36 months after the date the qualified beneficiary's benefits would otherwise have terminated.
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.
How much does COBRA typically cost per month?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
How long does my former employer have to offer me COBRA?
Your employer must mail you the COBRA information and forms within 14 days after receiving notification of the qualifying event. You are responsible for making sure your COBRA coverage goes into and stays in effect - if you do not ask for COBRA coverage before the deadline, you may lose your right to COBRA coverage.
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.
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.
How does COBRA work if I get a new job?
COBRA coverage doesn't automatically end when you get a new job, but you can choose to terminate it once your new employer's health insurance takes effect. If there's a waiting period before your new coverage starts, COBRA can act as a temporary safety net, ensuring you don't experience a gap in health insurance.
What are the cons of COBRA?
- It's expensive. Your premiums will probably go up since your employer isn't contributing. ...
- You're subject to your employer's plan offerings. You might lose COBRA coverage if the employer changes its plan or goes out of business.
Are there better options than 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 ...
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 lifespan of a COBRA?
The average lifespan of a wild king cobra is about 20 years.
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 keep your COBRA benefits instead of taking insurance thru a new employer?
Yes, you can keep COBRA coverage even when your new employer offers health insurance.
Are COBRA payments reported on W-2?
In general, each employer providing coverage will have to report the prorated cost on the employee's W-2. If the employee is terminated, the employer can also include the COBRA payment amounts paid by the employee after termination.
Is COBRA covered by severance?
When employees lose their jobs and are offered severance, it's common for employers to pay all or a portion of the COBRA premiums for a few months on a pre-tax basis (although not required by law).