How long do I have to pay COBRA premium?
Asked by: Mr. Dylan Heaney | Last update: October 9, 2025Score: 4.4/5 (68 votes)
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.
How long do I have to elect and pay for COBRA?
Qualified beneficiaries must be given an election period of at least 60 days during which each qualified beneficiary may choose whether to elect COBRA coverage. This period is measured from the later of the date of the qualifying event or the date the COBRA election notice is provided.
Is COBRA extended for 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.
Is non-payment of premium a COBRA qualifying event?
Terminating COBRA Due To Non-Payment Is Not A Qualifying Event. If your COBRA plan ends due to non-payment, you will not be able to restart that plan in the future. Furthermore, termination of COBRA is not a qualifying event to get new major medical insurance.
COBRA Insurance | What You Need to Know
What is the 60 day loophole for cobras?
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 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.
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 cost per month?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
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.
Is COBRA a one time payment?
If you get COBRA, you must pay for the entire premium, including any portion that your employer may have paid in the past. This means your payment is often more expensive than what you paid as an employee. You can collect COBRA benefits for up to 18 months. This may be extended to 36 months under certain circumstances.
What happens if I don't pay my health insurance premium?
If you miss a monthly premium payment
Your health insurance company could end your coverage if you fall behind on your monthly premiums. A short period after your monthly health insurance payment is due to pay all owed premiums to avoid losing coverage.
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.
How do I pay my COBRA premium?
One-Time Electronic Payments: ACH, Credit Card, or Debit Card Payments: Payments can also be made by one-time ACH, debit card, and credit card. From your online Vita COBRA member portal, go to the “Make Payment” option and select your payment method.
Can you pay COBRA retroactively?
COBRA is always retroactive to the day after your employer coverage ends. So, you'll need to pay your premiums for that period too.
Can you terminate COBRA mid month?
You may voluntarily terminate your coverage prior to the last day of COBRA for any reason.
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.
Can you go on COBRA for a month?
However, if you only need COBRA coverage for a short period of time, such as one or two months, you can pay only for those months from the coverage loss date.
Does COBRA do payment plans?
The plan must allow qualified beneficiaries to pay premiums on a monthly basis if they ask to do so, and the plan may allow them to make payments at other intervals (weekly or quarterly). The initial premium payment must be made within 45 days after the date of the COBRA election by the qualified beneficiary.
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.
Do you pay taxes on COBRA?
Taxable Options: COBRA subsidies are taxable if the employer provides funds directly to individuals without requiring substantiation. This is because an employee may or may not use the funds to pay for COBRA premiums, and therefore, the funds are treated as wages subject to applicable taxes.
Can you extend COBRA coverage after 18 months?
An 18-month extension of coverage will be available to spouses and dependent children who elect continuation coverage if a second qualifying event occurs during the first 18 months of continuation coverage. The maximum amount of continuation coverage available when a second qualifying event occurs is 36 months.
How much does COBRA typically cost per month?
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.
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.