Do you have to back pay COBRA?

Asked by: Dr. Estrella Satterfield IV  |  Last update: October 2, 2025
Score: 4.1/5 (31 votes)

Payment generally must cover the period of coverage from the date of COBRA election retroactive to the date of the loss of coverage due to the qualifying event. Premiums for successive periods of coverage are due on the date stated in the plan with a minimum 30-day grace period for payments.

Who pays for COBRA after termination?

COBRA and Cal-COBRA

COBRA allows former employees, retirees, and their dependents to temporarily keep their health coverage. If you get COBRA, you must pay for the entire premium, including any portion that your employer may have paid in the past.

What is the 60 day loophole for COBRA?

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.

What are the rules for COBRA coverage?

COBRA eligibility has three basic requirements that must be met for you to get a continuation of 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 late can you pay a COBRA?

The COBRA law allows for a 30-day grace period, after the premium due date, for paying or postmarking your premium.

COBRA Insurance | What You Need to Know

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How long can COBRA be backdated?

Even if you elect for COBRA a month after you lose your coverage, COBRA works retroactively after you elect it, all the way back to the date of the loss of coverage as long as you make your premium payment. After your 18 months of COBRA coverage, your will need to find options with Medicare.

Can you pay COBRA retroactively?

This period is measured from the later of the date of the qualifying event or the date the COBRA election notice is provided. COBRA coverage is retroactive if elected and paid for by the qualified beneficiary.

Can employers deny COBRA?

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.

How much does COBRA cost per month?

The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.

How does COBRA work when you quit your job?

Federal COBRA is a federal law that lets you keep your group health plan when your job ends or your hours are cut. Federal COBRA requires continuation coverage be offered to covered employees, their spouses, former spouses, and dependent children.

Do you have to pay for COBRA upfront?

When you elect continuation coverage, you cannot be required to send any payment with your election form. You can be required, however, to make an initial premium payment within 45 days after the date of your COBRA election (that is the date you mail in your election form, if you use first-class mail).

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 I go to the doctor while waiting for a COBRA?

You will be reimbursed for any medical bills that you pay out-of-pocket during this period. Contact the plan administrator for more information on filing a claim for benefits. Complete plan rules are available from the employer's benefits offices.

Is COBRA paid in arrears?

COBRA is always retroactive to the day after your employer coverage ends. So, you'll need to pay your premiums for that period too.

Do employers ever pay for COBRA?

Yes, an employer can pay all or part of a former or current employee's COBRA premiums.

How long does it take for a COBRA to kick in?

COBRA coverage timeline

The coverage starts the day the previous coverage ends. The employer's COBRA administrator is responsible for sending out an election notice with information about deadlines for enrollment. For example, if employment ends on April 25, COBRA will pick up where the group health plan ends.

What are the disadvantages of COBRA coverage?

COBRA cons
  • 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.

How do I calculate my COBRA payment?

Using the information provided in Box 12 of your most recent W-2 form, labeled Code DD, you will find the total annual cost of your employer-sponsored health coverage. To determine your monthly COBRA premium, divide this annual amount by 12 and include any applicable administrative fees, which may be up to 2%.

How long can I stay on COBRA?

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.

What happens if employer never sends COBRA?

Employers who fail to comply with the COBRA requirements can be required to pay a steep price. Failure to provide the COBRA election notice within this time period can subject employers to a penalty of up to $110 per day, as well as the cost of medical expenses incurred by the qualified beneficiary.

How do COBRA payments work?

Who pays for COBRA coverage? The employee generally pays the full cost of the insurance premiums. In fact, the law allows the employer to charge 102 percent of the premium, and to keep the 2 percent to cover your administrative costs.

Do you get a COBRA if fired?

(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 ...

What is a COBRA loophole?

Understanding the 60-Day Loophole

You have a 60-day window following the end of your employer-sponsored plan to select COBRA coverage or choose a new plan in the individual ACA marketplace.

How long do I have to make my first COBRA payment?

The initial premium payment must be made within 45 days after the date of the COBRA election by the qualified beneficiary. Payment generally must cover the period of coverage from the date of COBRA election retroactive to the date of the loss of coverage due to the qualifying event.

Is COBRA coverage worth it?

If you're close to meeting your deductible on your current insurance plan and you have high health care costs, it may be worth it to temporarily stay on your COBRA plan,” explains Donovan. The same holds true if you're far into your employer plan's year and have already met your deductible.