Do I need to cancel COBRA?

Asked by: Hattie White  |  Last update: September 16, 2023
Score: 4.9/5 (48 votes)

You will likely want to drop COBRA once you become eligible for a different health plan, such as if you get another job. If you stop paying premiums, COBRA coverage will end automatically. A health plan may also terminate a COBRA plan if your former employer drops group health insurance coverage.

Do you have to manually cancel COBRA?

How do I cancel my COBRA coverage? Cancelling COBRA coverage requires notification in writing (users can also opt to email PrimePay at If canceling because eligible to enroll in Medicare, users may still opt to keep dental and vision COBRA if needed.

How do you stop COBRA coverage?

How To Cancel COBRA Coverage. To cancel your COBRA plan you will need to notify your previous employer or the plan administrator in writing, requesting to terminate the insurance. The plan administrator is also who you've made your premium payments to.

Can I cancel my COBRA coverage at any time?

A person who elects COBRA can choose to cancel the coverage at any time (unlike active employee coverage, which can only be dropped during the employer's open enrollment period or during a special enrollment period linked to a qualifying life event).

Do I need to do anything if I don't want COBRA?

You must decide to accept or reject COBRA coverage during a certain time period (usually 60 days after your employer notifies you). You must pay your monthly premiums or you can lose your coverage. Once you have used up all your COBRA benefits, you may be able to get an extension of coverage under Cal-COBRA.

Everything you Need to Know about COBRA Insurance

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Am I automatically enrolled in COBRA?

Your COBRA insurance will start immediately after making your first premium payment. Once you elect to continue the employer group health plan, your benefits will be retroactive to the date your coverage would otherwise have stopped.

Does COBRA take effect immediately?

How long does it take for COBRA to kick in? With all paperwork properly submitted, your COBRA coverage should begin on the first day of your qualifying event (for example, the first day you are no longer with your employer), ensuring no gaps in your coverage.

Can I cancel COBRA and enroll in marketplace?

Can I drop it during Open Enrollment and enroll in a Marketplace plan instead? During Open Enrollment, you can sign up for a Marketplace plan even if you already have COBRA. You will have to drop your COBRA coverage effective on the date your new Marketplace plan coverage begins.

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.

Can I cancel COBRA early?

Keep in mind if you choose to terminate your COBRA continuation coverage early with no special enrollment opportunity at that time, you generally will have to wait to enroll in other coverage until the next open enrollment period for the new group health plan or the Marketplace.

Can I cancel COBRA and get Obamacare?

Does that affect my eligibility for Marketplace subsidies? No, having COBRA doesn't affect your eligibility for premium tax credits. However, you can only drop COBRA and sign up for a Marketplace plan and premium tax credits during Open Enrollment.

What is the grace period for COBRA payments?

What is the grace period for monthly COBRA premiums? After election and initial payment, qualified beneficiaries have a 30-day grace period to make monthly payments (that is, 30 days from the due date).

Can my Cobra insurance be Cancelled?

There are many reasons why your existing COBRA coverage can be canceled: If you contact your past employer to notify them to terminate the COBRA plan. If you fail to make an election during the election process. If you start a group health insurance with a new employer.

What happens if you don't respond to COBRA?

If your COBRA payment is not made in a timely manner, or within the 30-day grace period then you are risking termination of your COBRA rights and coverage. If you do make the payments within the time allowed you will not lose coverage, but will still need to pay the later months' coverage.

How do I get a refund from COBRA?

COBRA is the law that requires your previous employer to offer coverage through their group health plan. You would need to contact your previous employer's COBRA Administrator (usually in the HR Department) or you may contact your provider directly to inquire about a refund for payments you've made after cancellation.

Can I change my mind about COBRA?

If you waive COBRA continuation coverage before the due date, you may change your mind if you submit a completed election form before the due date.

Can COBRA be a partial month?

No, premiums cannot be prorated for a shorter period. You must pay the full premium amount for each month. Partial payments will be accepted, but cannot be reported to the carrier until the full amount has been paid. You will not have coverage until all premiums have been paid in full.

Are COBRA payments taxable?

When an employer pays COBRA premiums directly to a terminated employee, the amount paid can generally be treated as non-taxable income.

Does COBRA cost more than regular insurance?

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 2022, employees paid an average of $111 per month for an individual plan and $509 per month for a family plan, according to KFF.

Can I choose marketplace instead of COBRA?

Can you change from COBRA to a Marketplace plan? Yes, you can change.

Can I choose Obamacare instead of COBRA?

If you choose to enroll in COBRA, you can switch to ACA health insurance under the following circumstances: You have used up all of your COBRA coverage. You have another qualifying life event that makes you eligible for another Special Enrollment Period. It is the annual Open Enrollment Period.

Is COBRA cheaper than marketplace?

Benefits of Getting Coverage Through The Healthcare Insurance Marketplace (HIM) In general, COBRA tends to be more expensive than HIM plans. Even though you are eligible to receive the same insurance that you had through your employer, you are now responsible for paying the entire premium cost.

How does COBRA work after termination?

(California passed a similar law known as “Cal-COBRA.”) Under COBRA, the group plan health insurance plan made available to terminated workers provides the exact same benefits as they would receive if they were still a member of the group, except that the employees have to pay the employer's cost of providing the ...

Is COBRA 30 or 60 days?

If you are entitled to elect COBRA continuation coverage, you must be given an election period of at least 60 days (starting on the later of the date you are furnished the election notice or the date you would lose coverage) to choose whether or not to elect continuation coverage.

How long do you have to respond to COBRA?

60 Days. If you are eligible to choose COBRA coverage, you have a period of at least 60 days, from the date you receive the election notice or the date you will lose coverage to choose whether to continue coverage or not.