COBRA Education Series
Most private-sector employers that maintain group health plans for their employees must comply with COBRA’s continuation coverage requirements. This includes, for example, corporations, partnerships and tax-exempt organizations. However, COBRA does not apply to group health plans maintained by small employers.
A group health plan may terminate continuation coverage earlier than the end of the maximum period for any of the following reasons: Premiums are not paid in full on a timely basis; The employer ceases to maintain any group health plan; A qualified beneficiary begins coverage under another group health plan after electing continuation coverage; A qualified beneficiary becomes entitled to Medicare benefits after electing continuation coverage; or A qualified beneficiary engages in conduct that would justify the plan in terminating coverage of a similarly situated participant or beneficiary not receiving continuation coverage (such as fraud).
COBRA premiums may be increased if the costs to the plan increase, but they generally must be fixed in advance of each 12-month premium cycle. The plan must allow qualified beneficiaries to pay premiums on a monthly basis if they ask to do so, and the plan may allow them to make payments at other intervals (weekly or quarterly).
If a qualified beneficiary waives continuation coverage during the election period, they must be permitted to later revoke the waiver of coverage and elect continuation coverage, as long as the revocation is done before the end of the election period. If a waiver is later revoked, however, the plan is permitted to make continuation coverage begin on the date the waiver was revoked.
Confused about COBRA coverage? Learn when it applies, who is entitled to it, what benefits apply, and more.
A group health plan is required to offer COBRA continuation coverage only to qualified beneficiaries and only after a qualifying event has occurred.
COBRA coverage offers benefits identical to the plan you were previously under, thus why it's referred to as continuation coverage.
There are four main notice types that can be sent out regarding COBRA: General or initial notice, Coverage election notice, Notice of unavailability of COBRA coverage, and Notice of early termination of COBRA coverage.
