What if the employer doesn't send a COBRA?
Asked by: Keeley Mraz MD | Last update: September 11, 2025Score: 4.3/5 (56 votes)
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.
How long does a company have to send COBRA information?
Your employer must mail you the COBRA information and forms within 14 days after receiving notification of the qualifying event. 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.
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.
What happens if you don't make a COBRA payment?
You can be required, however, to make an initial premium payment within 45 days after the date of your COBRA election (that is the date you mail in your election form, if you use first-class mail). Failure to make any payment within that period of time could cause you to lose all COBRA rights.
My Employer Did Not Give Me My COBRA Continuation Health Coverage - What Do I Do?
What if my employer never sent me COBRA?
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. Call the Help Center if you have any questions.
What happens if COBRA is not offered?
Employers who fail to comply with the COBRA requirements can be required to pay a steep price. Failure to provide the COBRA election notice within this time period can subject employers to a penalty of up to $110 per day, as well as the cost of medical expenses incurred 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.
What employers are exempt from 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.
How do I get Cobra insurance after termination?
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. You will receive a notice from your employer with information about deadlines for enrollment.
What are the penalties for not offering 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.
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.
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.
What is an involuntary termination for COBRA?
An involuntary termination is “a severance from employment due to the independent exercise of the unilateral authority of the employer to terminate the employment, other than due to the employee's implicit or explicit request, where the employee was willing and able to continue performing services.” While wordy, the ...
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.
Is no call no show gross misconduct?
Whether a no call no show is considered gross misconduct can depend on the circumstances and the employer's policies. Generally, a single instance may not necessarily constitute gross misconduct unless it causes significant harm to the business or violates specific contractual obligations.
Can you get COBRA retroactively?
COBRA coverage is retroactive if elected and paid for by the qualified beneficiary.
Why is COBRA so expensive?
Why is COBRA more expensive than employer-sponsored insurance? COBRA is more expensive because the individual is responsible for the entire premium amount without the employer's financial contribution that is provided during active employment.
Who pays for COBRA coverage?
Group health coverage for COBRA participants is usually more expensive than health coverage for active employees, since usually the employer pays a part of the premium for active employees while COBRA participants generally pay the entire premium themselves.
Can a company not offer COBRA?
Q3: Which employers are required to offer COBRA coverage? COBRA generally applies to all private-sector group health plans maintained by employers that had at least 20 employees on more than 50 percent of its typical business days in the previous calendar year.
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.
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.
What if my employer didn't send me COBRA information?
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 you sue a company for not offering COBRA?
In certain cases, yes, you can sue your employer for not offering COBRA. Employers are obligated to inform eligible employees about the availability of insurance coverage under COBRA and the requirement for employees to pay the full premium.
What is the penalty for not sending COBRA notice?
Failure to provide the COBRA election notice within this time period can subject employers to a penalty of up to $110 per day, at the discretion of the court, as well as the cost of medical expenses incurred by the qualified beneficiary.