Can you stay on COBRA even if you get a new job?
Asked by: Shanna Sawayn | Last update: January 2, 2026Score: 4.1/5 (55 votes)
Can I keep COBRA if I get another 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 days 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 to cancel COBRA when you 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 makes you ineligible for 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.
COBRA Insurance | What You Need to Know
Under what circumstances can a COBRA be denied?
If the former employee is considered an eligible plan participant, then he or she would be a qualified beneficiary and entitled to COBRA coverage unless the second exception (denial based on gross misconduct) is applied. Under COBRA, a person who has been terminated for gross misconduct may be denied COBRA.
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 does COBRA work after resignation?
Regardless if you quit, got fired, were laid off or retired you have the right to continue the employer's group health insurance for up to 18 months. You will coordinate this benefit with the human resources department of the employer or their third-party administrator.
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.
How long can you 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.
How much does COBRA typically cost per month?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
Does insurance end the day you quit?
When you leave or are let go from a job, your health insurance either expires on your last day of work or at the end of the month of your exit, says Andy Gillin, attorney and managing partner at GJEL Accident Attorneys. For example, if you quit on July 15th, your coverage usually continues until July 31st.
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?
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 ...
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.
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 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 ...
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.
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.
What happens if you have a gap in health insurance coverage?
How long does a Short Gap in Coverage exemption last? For those who were uninsured for a period of less than three consecutive months during the year, the exemption will be granted for those months. You will need to claim a new exemption in future years if you experience these circumstances again.
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 you get off COBRA anytime?
COBRA participants may terminate coverage early, but they generally won't be able to get a Health Insurance Marketplace plan outside of the open enrollment period.
How much does COBRA cost per month?
This means health plan costs could jump to over $717 per month for an individual opting into COBRA, including the extra fee, and to over $2,037 per month for family coverage. To help defray some of the steep costs associated with COBRA coverage, you can use funds in your health savings account (HSA) to cover premiums.