Can you keep your COBRA benefits instead of taking insurance thru a new employer?
Asked by: Darren Spencer | Last update: September 8, 2025Score: 5/5 (63 votes)
Can I keep COBRA if my new employer offers insurance?
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 happens to COBRA if a company changes insurance?
Any change made to the plan's terms that apply to similarly situated active employees and their families will also apply to qualified beneficiaries receiving COBRA continuation coverage.
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 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.
Understanding your health insurance options if you leave your employer
Do you get a refund if you cancel COBRA?
Premium payments for your COBRA health insurance continuation coverage, will coverage for a full month. Major medical plans will most often start on the first of the month and end on the last day. Generally, there are no refunds when you cancel your plan early.
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 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.
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.
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.
How do you keep a COBRA for 36 months?
You can stay on COBRA for 18 or 36 Months
COBRA coverage generally lasts 18 months for the employee. However, dependents on the plan, such as a spouse or children, can be eligible for up to 36 months of coverage under certain circumstances, like divorce or the death of the covered employee.
Can I still use COBRA if I quit my job?
Cal-COBRA is a California Law that lets you keep your group health plan when your job ends or your hours are cut.
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.
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 would make you ineligible for COBRA?
402.
The individual must have been covered under the plan before the qualifying event date. If the individual was not covered, he or she is not eligible for COBRA. Please note COBRA will only be offered to dependents considered eligible based on Public Employee Medical and Hospital Care Act (PEMCHA) law.
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 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 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 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.
Do you use the same insurance card with COBRA?
Unless you've lost your insurance card, the same one you had should still work. A health insurance card is used to give your healthcare providers, like doctors and clinics, the details to bill your medical expenses to.
Can an employer deny COBRA coverage?
Gross misconduct provides a basis for denying COBRA coverage to the employee and to the employee's dependents.
Can I keep COBRA and another insurance?
There's no federal mandate to cancel COBRA upon obtaining new job-based insurance.
How to 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.
How much is cobra insurance for a single person?
You should expect COBRA insurance costs to be substantially higher than what you paid as an employee because your employer is no longer required to pay a share. In 2023, employees paid an average of $145 per month for an individual plan and $548 per month for a family plan, according to KFF.