Is the COBRA loophole 60 days retroactive?
Asked by: Alfonso Rohan | Last update: July 10, 2025Score: 4.9/5 (17 votes)
How far back can COBRA be retroactive?
Yes, you would be covered from the date of your retirement and lost coverage. COBRA is meant to do exactly that. 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.
What is the 60 day rule for COBRA?
You have 60 days after being notified to sign up. If you are eligible for Federal COBRA and did not get a notice, contact your employer. 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.
What is the COBRA loophole for 60 days?
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.
Is there a grace period for COBRA coverage?
Is there a grace period? The COBRA law allows for a 30-day grace period, after the premium due date, for paying or postmarking your premium. Please note, 30 days does NOT mean 31 days. There is no way to extend the deadline, even if you are out of town or forget to make your payment.
What Is COBRA for Health Insurance
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.
What is a retroactive termination of health insurance?
What is a retroactive termination? Retroactive termination is the assignment of a new end date to an insurance policy that is no longer active, often because the plan is no longer being paid for. The new end date assigned is typically the date a plan's premium was last paid.
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.
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 you use COBRA for 2 months?
You can collect COBRA benefits for up to 18 months.
How to waive COBRA coverage?
If you are currently receiving COBRA coverage for which a premium is being paid and you wish to waive future coverage, you can simply refrain from paying the COBRA premium for that coverage period.
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 ...
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.
Does COBRA kick in immediately?
An employee eligible for COBRA insurance must opt for it within 60 days of their employer-sponsored insurance termination date. The coverage starts the day the previous coverage ends.
Is COBRA cheaper than marketplace?
Both COBRA and ACA Marketplace plans have their advantages. COBRA lets you keep your exact employer-based plan but is often more expensive. ACA plans may be more affordable, especially with subsidies, but require choosing a new plan. The best choice depends on your financial situation and healthcare needs.
Who is not eligible for COBRA?
Indemnity policies, PPOs, HMOs, and self-insured plans are all eligible for COBRA extension; however, federal government employee plans and church plans are exempt from COBRA. Individual health insurance is also exempt from COBRA extension.
Is COBRA retroactive?
COBRA is always retroactive to the day after your employer coverage ends. So, you'll need to pay your premiums for that period too.
Is quitting a job considered a life-changing event?
Is losing or getting a new job a qualifying life event? Yes, if you lose your employer-sponsored health care, you're eligible for a Special Enrollment Period. There's no distinction between leaving your place of employment willingly, like in the case of resignation, or unwillingly, like with a layoff or firing.
How to get COBRA after quitting job?
- Your former employer has up 45 days to send your COBRA continuing coverage election paperwork. ...
- The law requires your former employer to give you a 60 day open enrollment period to choose to continue your current work health plan or waive COBRA coverage.
What is the loophole for COBRA coverage?
Understanding the 60-Day Loophole
It's not so much of a loophole, but two 60-day windows of time to remember. You have a 60-day window following the end of your employer-sponsored plan to select COBRA coverage or choose a new plan in the individual ACA marketplace.
Can you be turned down for 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.
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. Second qualifying events are: Death of the covered employee.
Does health insurance end immediately after termination?
Employers aren't required to continue providing health insurance coverage after termination, so most workers lose coverage immediately or at the end of their last month of employment. However, most companies must allow you to stay on your plan through COBRA continuation coverage.
Can you retroactively terminate an employee?
The few decisions that have previously addressed whether an employer may retroactively terminate an employee for cause, whether based on evidence discovered after the employee's departure or otherwise, suggest that retroactive terminations for cause are ineffective because they are inconsistent with certain standard ...
What is the retroactive date for insurance?
A retroactive date is the date from which you have held uninterrupted professional indemnity insurance cover (even if you changed insurer during this time) or a date in the past from which your insurer has agreed to cover you. Any claims that arise from events prior to this date is not covered by your insurance.