How long do I have to make my first COBRA payment?
Asked by: Richard Jacobs | Last update: December 28, 2025Score: 4.1/5 (34 votes)
What is the grace period to elect a COBRA?
The grace period is the time between the day that the qualified beneficiary elects COBRA continuation coverage and the day that the premium payment is made. Under the COBRA regulations, health plans are prohibited from requiring payment of any premium prior to 45 days after the date of the COBRA election.
How long do you have to send a COBRA notice?
14-Day Notice Period
The HR office must provide the COBRA Election Notice and Election Form to qualified beneficiaries within 14 days from the date of the qualifying event or loss of coverage, or when the HR office is notified, whichever comes first.
What happens if you are late on a COBRA payment?
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.
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.
COBRA Insurance | What You Need to Know
Do I have to pay a COBRA right away?
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). Failure to make any payment within that period of time could cause you to lose all COBRA rights.
What is the timeline for COBRA payments?
You have 45 days from the date of your COBRA election (either the date you elect online, the date you fax or email the Election Form, or the postmark date on the mailed envelope) to pay all premiums due from your COBRA start date through the current month.
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.
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 penalty for late COBRA notice?
The employer penalties for not complying with the COBRA:
The IRS can charge you $100 tax per day of noncompliance per person or $200 tax per day per family.
What happens if an employer doesn't send a 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.
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 much does COBRA typically cost per month?
COBRA coverage is not cheap.
A COBRA premium can cost on average $400 to $700 a month per person.
How do I make a payment on COBRA?
Navigate to the Payment Summary tab under Payment Info on the left-hand side of the page. Click "Make Payment." 2. Select "Payment Method" from the Make a Payment drop-down list and choose to pay by credit or debit card or by checking or savings account, and then click "Next."
Can COBRA end mid month?
No. You cannot start and stop COBRA and you cannot skip any months. COBRA is always effective on the day after your active coverage ends and is continuous until terminated.
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.
Do you have to pay for COBRA upfront?
Plans cannot require qualified beneficiaries to pay a premium when they make the COBRA election. Plans must provide at least 45 days after the election (that is, the date the qualified beneficiary mails the election form if using first-class mail) for making an initial premium payment.
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.
Can I be denied 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.
When should the initial COBRA notice be sent?
COBRA requires employers to provide an initial notice to each covered employee and spouse within 90 days of coverage starting (or from when the plan first becomes subject to COBRA).
Can you retroactively pay for COBRA?
COBRA is always retroactive to the day after your employer coverage ends. So, you'll need to pay your premiums for that period too.
Why is COBRA so expensive?
Why is COBRA more expensive than employer-sponsored insurance? COBRA is more expensive because the individual is responsible for the entire premium amount without the employer's financial contribution that is provided during active employment.
How long can I wait to pay for COBRA?
The initial premium payment must be made within 45 days after the date of the COBRA election by the qualified beneficiary.
What happens if you miss the COBRA deadline?
Meet the Deadlines
If you are eligible for Cal-COBRA and did not get a notice, contact your health plan. If you miss the deadline, you may lose the chance to sign up for Federal COBRA or Cal-COBRA. Call the Help Center if you have any questions.
Can COBRA be done online?
Possibly. If the employer uses a third-party COBRA Administrator, they may use online accounts to manage the collection of premium payments, paperless billing and other notifications. Sometimes, an employer may manage their COBRA continuation themselves through the HR Department.