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Can an Employee Waive Cobra Rights?

The Consolidated Omnibus Budget and Reconciliation Act, or COBRA, gives workers and their dependents the right to continue group health insurance when they would otherwise lose benefits. Employees are eligible for COBRA coverage because of voluntary or involuntary job loss, death, divorce or transition between jobs. In some cases, an employee or qualified beneficiary may decide to waive the option to continue coverage through COBRA. This decision is up to the employee and his beneficiaries.

  1. Waiver Form

    • An employee who rejects COBRA continuation coverage must sign a waiver. The waiver informs the employee of his rights to continue health coverage and the date in which the current health plan will terminate if he chooses to waive coverage. The waiver also indicates why the employee is eligible for COBRA continuation such as for job termination. The waiver serves as notification that the employee willfully waives his right to COBRA and understands that no additional benefits are available under the current health insurance plan once it terminates.

    Reasons to Waive COBRA

    • The primary reason an employee waives COBRA is because insurance coverage is available through another source such as a new employer or through a spouse's health insurance plan. A qualified beneficiary may waive COBRA coverage because he obtains individual coverage through a private health insurer. In cases such as divorce, the ex-spouse may elect to obtain insurance from another source rather than continuing coverage through the ex-spouses plan. Some people decide to remain uninsured or cannot afford to continue health coverage through COBRA.

    Employee Rights

    • An employee has the right to continue their health insurance through COBRA if they experience a qualifying event. These rights also extend to the employee's beneficiaries who have equal rights to continue coverage. Each affected party has the right to continue or waive COBRA coverage. After the waiver is signed, the employee or qualified beneficiary has the right to revoke the previous decision to waive coverage within the election period.

    Employer Responsibilities

    • An employer must notify a worker who becomes eligible for COBRA coverage within 30 days of eligibility. Further, employers must also notify the health plan administrator of the employee's qualifying event. The employer must provide all employees with certain notifications regarding their rights to COBRA coverage as well as their right to waive coverage if applicable. Although a worker or qualified beneficiary has the right to waive COBRA, the employer and plan administrator must give the worker the option to revoke the waiver during the election period.

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