How long can you continue with COBRA?
Asked by: Madisyn Kertzmann | Last update: September 12, 2025Score: 4.2/5 (24 votes)
How long can you stay on COBRA after leaving a job?
You can stay on COBRA for 18 or 36 Months
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 COBRA be extended to 36 months?
California Insurance Code (CIC) Section 10128.59 provides extension under Cal-COBRA for those who have exhausted their 18 months on federal COBRA (or longer in special circumstances) for a total extension that cannot exceed 36 months.
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.
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.
COBRA Insurance | What You Need to Know
What is the average COBRA payment?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
What is the largest disadvantage of COBRA?
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.
Is it better to use COBRA or obamacare?
ACA plans may offer significant cost savings through subsidies that aren't available under COBRA. By transitioning to an ACA plan, you can often find more affordable coverage without waiting until COBRA expires, giving you flexibility in managing your healthcare costs.
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.
What is the timeline for COBRA?
60 days: The COBRA-eligible participant(s) have 60 days to enroll in coverage. If the COBRA-eligible participant does not elect coverage within 60 days after the notification, they are no longer eligible to elect.
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.
What is the maximum duration for 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 is the COBRA fee?
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.
Can COBRA be extended beyond 18 months?
Consumers may also extend COBRA continuation coverage longer than the initial 18-month period with a second qualifying event—e.g., divorce or legal separation, death of the covered employee, Medicare entitlement of the covered employee (in certain circumstances), or loss of dependent child status —up to an additional ...
How to get 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 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.
Does COBRA automatically cancel after 18 months?
In that case, COBRA lasts for eighteen months. If the qualifying event is the death of the covered employee, divorce or legal separation of the covered employee from the covered employee's spouse, or the covered employee becoming entitled to Medicare, COBRA for the spouse or dependent child lasts for 36 months.
Are COBRA payments eligible for tax credit?
According to the Federal tax laws, your unreimbursed COBRA payments are, in fact, deductible as medical expenses on your 1040 tax return in the same way that you can deduct unreimbursed payments for legal medical services provided by physicians, surgeons, dentists, and other medical practitioners, as well as any ...
How long can I have COBRA if I quit my job?
COBRA coverage lets you pay to stay on your job-based health insurance for a limited time after your job ends (usually 18 months).
What are disadvantages of Cobra insurance?
Nonetheless, it's important to keep in mind the downsides of COBRA. Some of the most prominent of these include the high cost of insurance when it is borne entirely by the individual, the limited period of coverage under COBRA, and the continued dependency on the employer.
Is there a better option than COBRA?
Marketplace insurance, available through the Affordable Care Act, often offers more affordable premiums than COBRA. The cost difference can vary based on the chosen plan, location, and income, as subsidies may reduce premiums for marketplace plans.
Who pays for COBRA 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 ...
What percentage of people take COBRA?
Roughly 15 percent of UI beneficiaries received health insurance coverage via COBRA. Taking into account the main eligibility requirements for the ARRA subsidy, we estimate that between a quarter and a third of eligible unemployed workers enrolled in subsidized COBRA for continuing health insurance.
Does Cobra insurance cover prescriptions?
“Medical care” includes: Inpatient and outpatient hospital care, • Physician care, • Surgery and other major medical benefits, • Prescription drugs, and • Dental and vision care. COBRA requires most of these plans to provide a temporary continuation of health coverage that would otherwise end due to certain events.