How to cancel Cal COBRA?
Asked by: Lois Corkery | Last update: May 8, 2025Score: 4.6/5 (41 votes)
How do I cancel my COBRA coverage?
- Terminate coverage on your online account. For instructions, see How to terminate coverage in your COBRA online account.
- Submit a completed COBRA Benefits Termination Form.
- Do not remit the premium payment for the month you no longer want coverage.
What is the difference between Cal-COBRA and COBRA?
Cal-COBRA covers indemnity policies, PPOs and HMOs, but not self-insured plans. Unlike federal COBRA, church plans are covered under Cal-COBRA. Federal COBRA generally extends health coverage for 18 months.
Is canceling COBRA considered a qualifying event?
However, you won't qualify if you decide to end COBRA early and are paying the full benefit cost yourself. You also don't qualify if you lose your COBRA coverage because you didn't pay your premiums. Remember, you don't need a special enrollment period if you voluntarily end COBRA during open enrollment.
Who sends Cal-COBRA notice?
When employees or dependents experience a qualifying event, employers must provide an election notice within 14 days of the notice of the qualifying event, notifying them of their eligibility to enroll in Cal-COBRA coverage, the terms and amount of the premium payment, and the beginning and ending dates of coverage.
How To Cancel COBRA Insurance | cancel cobra insurance plan
How do I contact Cal-COBRA?
You will then have 45 days from your election date to pay the premium for the initial coverage period (from your insurance termination date through the time of your payment). If you have billing questions, please contact the CalCOBRA State Continuation Unit at 1-888-318-2346 or send an email to CCEBU@aetna.com.
Can I send COBRA notice via email?
Only certain letters can be sent via email due to Cobra Federal Regulations. For more information, see What Cobra/Retiree notices are available to be sent via email to member? "Go Green" language will appear on several notices to notify members that they can sign up for paperless communication.
Can COBRA be Cancelled without notice?
If the group decides to terminate continuation coverage early, the plan must provide an early termination notice as soon as is reasonable following the decision.
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.
Can I switch from COBRA to private insurance?
You can only drop COBRA and sign up for a Marketplace plan and premium tax credits during Open Enrollment. You will have to drop your COBRA coverage effective on the date your new Marketplace plan coverage begins.
Is Cal-COBRA more expensive?
COBRA and Cal-COBRA
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.
Who manages Cal-COBRA?
All employers are responsible for administering their own federal COBRA program. Blue Shield administers Cal-COBRA when an employer is subject to it under state law. Groups have the option to self-administer their federal COBRA benefits.
How long does Cal-COBRA last?
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.
What is the administration fee for Cal COBRA?
The cost of COBRA is the same premium charged to the district for the plan that the member was enrolled in prior to losing coverage, plus a 2% administration fee for Federal COBRA and 10% administration fee for State Continuation (CalCOBRA).
Can I end COBRA early?
COBRA provides that your continuation coverage may be terminated before the end of the maximum coverage period for any of the following reasons: The Plan Sponsor no longer provides group health coverage to any of its employees. Any required premium for continuation coverage is not paid in full on time.
How do I write a COBRA termination letter?
Required content and form
The notice must explain the reason coverage has terminated, provide the date of termination and describe any rights the qualified beneficiary may have to elect alternative group or individual coverage, such as a conversion right (29 C.F.R. 2590.606-4(d)).
How do I waive COBRA coverage?
You can also end your COBRA continuation coverage early and switch to a Marketplace plan if you have another qualifying event such as marriage or birth of a child through something called a "special enrollment period." But be careful though - if you terminate your COBRA continuation coverage early without another ...
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.
What is the 105 day COBRA loophole?
So, if you maxed out the 60 day election period plus the 45 day payment period, you could actually go 105 days without paying for the coverage.
Do you get a refund if you cancel COBRA?
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.
What is the penalty for COBRA notice?
Failing to adhere to COBRA rules can result in costly penalties. The Department of Labor may impose fines of $110 per day per qualified beneficiary for non-compliance with notice requirements, and the IRS can levy excise taxes for violations.
Is cancelling COBRA a qualifying event?
No, stopping payment for COBRA coverage is not considered a qualifying event.
How long do you have to send a COBRA notice after termination?
When the qualifying event occurs, for example when the employee is terminated or quits, the employer must notify the COBRA administrator within 14 days, and the administrator then has 30 days to notify the worker of their eligibility.
Who is responsible for sending a COBRA notice?
COBRA Election Notice and Election Form. The HR office is required to provide an election notice and election form to covered employees and their qualified beneficiaries within 14 calendar days of a COBRA qualifying event or when the HR office is notified, whichever comes first.
How do you keep a 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 ...