What happens after a COBRA expires?
Asked by: Yolanda Cole | Last update: December 21, 2025Score: 5/5 (55 votes)
What happens after my COBRA coverage ends?
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.
Does COBRA automatically cancel after 18 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 ...
What happens if a COBRA lapses?
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 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 ...
COBRA health care benefits expire for millions
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.
Is there a grace period for COBRA payments?
After you are established on your COBRA coverage, ongoing monthly payments are due the first day of each month. There is a grace period of 30 days from the due date for ongoing monthly premium payments. If you mail your payment, it must be postmarked within the 30-day grace period.
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.
How long can you do COBRA after quitting?
COBRA coverage lets you pay to stay on your job-based health insurance for a limited time after your job ends (usually 18 months).
Can I reinstate a COBRA?
Once COBRA coverage is cancelled due to nonpayment of COBRA premiums the enrollee will not be reinstated.
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.
When can COBRA be terminated?
If you fail to make any payment before the end of the initial 45-day period, the plan can terminate your COBRA rights. The plan should set due dates for any subsequent premium payments, but it must provide a minimum 30-day grace period for each payment.
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.
Can I switch from COBRA to the marketplace?
From January 16-October 31: You can switch from COBRA to a Marketplace plan if: Your COBRA coverage is running out. You have to pay the full cost of COBRA coverage because your former employer stops contributing, or you lose a government subsidy (like COBRA premium assistance).
Does health insurance end the day you quit?
When does health insurance expire after leaving a job in California? Your health insurance may expire the day you leave your job, or at the end of that month. For instance, if you quit on January 10th, you may have coverage through January 31st. You'll need to find out what your employer's policy is.
How much does COBRA cost after termination?
Under COBRA, the administrator is allowed to charge the terminated worker for the full cost to the employer of the monthly coverage plus a 2% administration fee.
When can COBRA be extended to 36 months?
18 to 36-Month Period (Second Qualifying Event): A spouse and dependent children who already have COBRA coverage, and then experience a second qualifying event, may be entitled to a total of 36 months of COBRA coverage.
How much does COBRA typically cost per month?
The average monthly cost of COBRA Insurance premiums ranges from $400 to $700 per individual.
Does your deductible start over with COBRA?
If you choose a new plan through the Marketplace, your payments toward your deductible or out-of-pocket maximums will reset and go back to zero. However, if you choose COBRA, whatever you have contributed for the plan year will carry over.
What do I do if my COBRA is ending?
What to Do When COBRA Runs Out. It's important to act quickly if you need health insurance after your COBRA coverage ends. You only have 60 days to enroll in a Health Insurance Marketplace plan under the Special Enrollment Period, starting from the date you lost COBRA coverage.
What if I missed the COBRA deadline?
You are responsible for making sure your COBRA coverage goes into and stays in effect - if you do not ask for COBRA coverage before the deadline, you may lose your right to COBRA coverage. You must decide to accept or reject COBRA coverage during a certain time period (usually 60 days after your employer notifies you).
Does COBRA end automatically?
Your COBRA coverage will cancel automatically as of the end of the last coverage period for which timely premiums were paid and received. For example, a qualified beneficiary who has paid for COBRA through the end of November wishes to cancel her coverage as of December 1.
How does COBRA work after leaving a job?
COBRA is temporary. It gives you time to find another health plan or covers you until your next employer plan kicks in, like when you start a new job. Federal coverage lasts 18 months but may extend up to 36 months if you have a second “qualifying event.” For instance, a divorce or death of a spouse.
Is there a lapse in coverage with COBRA?
If the employee enrolls during the 60-day period, then there's no lapse in coverage because COBRA applies retroactively to the date the employee loses health insurance. So, for example, if employer-provided coverage ends on June 30, COBRA picks up on July 1.
How are COBRA premiums paid?
The three ways to pay COBRA premiums are through ACH (linked to your bank account), credit/debit card or check. We recommend paying by ACH.