Does COBRA continue the same coverage?

Asked by: Prof. Amir Bins  |  Last update: December 5, 2023
Score: 4.6/5 (35 votes)

The continuation coverage must be identical to the coverage currently available under the plan to similarly situated individuals who are not receiving continuation coverage. (Generally, this is the same coverage that the qualified beneficiary had immediately before the qualifying event.)

Do I keep my same insurance with COBRA?

Continuity in Coverage

Generally, your coverage under COBRA will be the same coverage you had while you were an employee.

What is the difference between continuation of coverage and COBRA?

State continuation coverage refers to state laws that enable employees to extend their employer-sponsored group health insurance even if they are not eligible for an extension through COBRA. While COBRA law applies throughout the U.S., it is only applicable to employers with 20 or more employees.

Does COBRA have the same benefits?

COBRA insurance covers you for the same benefits your employer's health plan covered you for. COBRA doesn't cover supplemental coverage, such as disability, life insurance, hospital care insurance, or other types of voluntary coverage.

What happens when COBRA runs out?

When your COBRA coverage expires, you will qualify for a special enrollment period to sign up for a marketplace ACA health insurance plan. There are also other options, such as Mira.

Everything you Need to Know about COBRA Insurance

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Does COBRA automatically cancel?

COBRA Coverage Periods

You are not locked into COBRA coverage and can cancel at any time within 18 months. 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.

How long does COBRA last after I quit my job?

18 Months. Regardless if you quit, get fired, were layed off or retire 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.

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 ...

Are COBRA benefits worth it?

Pros and Cons of COBRA

COBRA can help bridge the health insurance gap until you qualify for another health plan. You have up to 60 days to accept if you don't sign up for COBRA right away. Coverage is retroactive. You can keep using the same claims filing methods, doctors, and pharmacists that you're used to.

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 you go on COBRA twice?

It may be possible for qualified beneficiaries to extend their original 18-month period of COBRA continuation coverage for an additional 18 months (for a total maximum coverage period of 36 months) if they experience a second qualifying event.

Can I get COBRA multiple times?

You May Only Use COBRA One Time For Each Qualifying Event That Stops Your Health Insurance. COBRA continuation lasts for up to 18 months (in some situations a dependent can continue for up to 36 months) and is available each time your employer-sponsored health insurance would end due to a qualifying event.

Is COBRA coverage extended?

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.

Is COBRA primary or secondary?

Generally, if you are enrolled in both COBRA and Medicare, Medicare will be the primary payer and COBRA coverage will pay second. The secondary payer might not pay all of the uncovered costs.

Can you have COBRA and new insurance at the same time?

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.

Does COBRA keep the same deductible?

Do I have to start over with my deductible and out-of-pocket maximum accruals? No. COBRA coverage is an extension of the same coverage held during active employment. If you already satisfied your deductible during the current plan year, you will not have to do so again during the current plan year while on COBRA.

Is there a cheaper alternative to COBRA?

Typically ACA insurance is more affordable than COBRA insurance because you can be eligible for federal ACA subsidies, depending on your income. COBRA costs an average of $599 per month.

How many months is COBRA good for?

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.

Is COBRA offered if you quit your job?

You have 60 days to enroll in COBRA once your employer-sponsored benefits end. You may even qualify if you quit your job or your hours were reduced. Other COBRA qualifying events include divorce from or death of the covered employee.

How can I avoid paying COBRA?

If you want to avoid paying the COBRA cost, go with a short-term plan if you're waiting for approval on another health plan. Choose a Marketplace or independent plan for broader coverage. Choose a high-deductible plan to keep your costs low.

What disqualifies an employee for COBRA?

Under COBRA, a person who has been terminated for gross misconduct may be denied COBRA. Gross misconduct is not specifically defined by COBRA, but when based on an employer's practice or policy it could include misrepresentation during the hiring process or falsifying information on a Form I-9.

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.

Is COBRA retroactive after leaving a job?

Keep in mind that if you wait to enroll, you won't save any money. COBRA is always retroactive to the day after your employer coverage ends. So, you'll need to pay your premiums for that period too.

When you resign from a job what are you entitled to?

These benefits may include severance pay, health insurance, accrued vacation, overtime, unused sick pay, and retirement plans. Companies aren't obligated to provide severance. However, many employers do provide severance pay. Line up references before you leave.

Does your insurance end when you quit your job?

Key takeaways: If you have an employment-based insurance plan, coverage typically ends on your last day of work or the last day of the month in which you quit. You may be able to continue receiving coverage through your employer health plan with COBRA for 18 months or longer, but this option is often costly.