What if my employer did not offer COBRA?
Asked by: Ursula Wunsch | Last update: June 7, 2025Score: 4.1/5 (40 votes)
What is the penalty for not offering a COBRA?
Penalties for Non-Compliance
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.
What if I'm not offered a COBRA?
Employees can take the following actions if their employer is not complying with COBRA: Contact the Department of Labor to report the non-compliance, which may result in fines for the employer. Request reimbursement from the employer for any costs incurred due to the non-compliance.
Can I sue my employer for not offering me a COBRA?
You will need to file suit against the employer and insurer for breach of contract and violation of state and federal COBRA laws in order to obtain a judgment against whomever has dropped the ball on this matter.
Does my employer have to offer COBRA if I quit?
Yes, You Can Get COBRA Insurance After You Quit Your Job
Known as the Consolidated Omnibus Budget Reconciliation Act of 1985, this legislation applies to employers with 20 or more employees. State-level Mini-COBRA laws extend similar requirements to small businesses with fewer than 20 full-time employees.
My Employer Did Not Give Me My COBRA Continuation Health Coverage - What Do I Do?
Can a company refuse to offer COBRA?
You do not have to offer COBRA coverage to any of the following: an employee who is not yet eligible for your group health plan. an eligible employee who declined to participate in your group health plan. an individual who is enrolled for benefits under 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 if my employer didn't send me a COBRA?
What If I Did Not Receive a COBRA Election Letter? We recommend working with the employer's human resources department. Call and ask them to resend the health insurance continuation election form. They may refer you to their third-party administrator.
Can I sue my employer for not providing health insurance?
It has an obligation to honor that commitment, even though the law does not require it to provide health insurance. Otherwise, an employee can sue the employer to enforce the contract.
What happens if I don't want COBRA insurance?
After Open Enrollment ends, however, if you voluntarily drop your COBRA coverage or stop paying premiums, you generally will not be eligible for a special enrollment opportunity and will have to wait until the next Open Enrollment period.
Is it optional to offer COBRA?
COBRA generally requires that group health plans sponsored by employers with 20 or more employees in the prior year offer employees and their families the opportunity for a temporary extension of health coverage (called continuation coverage) in certain instances where coverage under the plan would otherwise end.
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 time limit for COBRA?
Periods of Coverage
In most cases, COBRA coverage for the covered employee lasts a maximum of 18 months. However, the following exceptions apply: 29-Month Period (Disability Extension): Special rules apply for certain disabled individuals and family members.
Can I waive COBRA?
If you waive COBRA coverage during the election period, you must be permitted later to revoke your waiver of coverage and to elect continuation coverage as long as you do so during the election period.
Do employers ever pay for COBRA?
Yes, an employer can pay all or part of a former or current employee's COBRA premiums.
What is a COBRA violation?
Employers have numerous responsibilities under COBRA, including tracking employee notices and deadlines. All too often, employers fail to comply with these requirements. Some common COBRA violations include: Failure to supply initial notice to new employees. Failure to provide notice after a qualifying event.
Can I sue my employer for not offering Cobra?
The employees along with the beneficiaries have the right to sue to cover the medical expenses that would have taken place when the COBRA should have been offered.
What if your employer does not offer a health insurance benefit?
If your employer doesn't offer you insurance coverage, you can fill out an application through the Marketplace. You'll find out if you qualify for: A health insurance plan with savings on your monthly premiums and out-of-pocket costs based on your household size and income.
Can I sue my employer for not giving me benefits?
Yes, you may have recourse if your employer promised you vision and dental benefits upon your last contract negotiation but never enrolled you in those benefits. The specific steps you can take will depend on the terms of your employment contract and the laws in your state.
Can an employer refuse COBRA?
The employer's denial of COBRA coverage to the eligible qualified beneficiaries could result in daily penalties, litigation, reimbursement of unpaid claims and other related costs.
How long does HR have to send 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.
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.
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 long after termination can you apply for COBRA?
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 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.