Can an Employee Change a Cobra Election?

Cobra continuation benefits help employees who lose their jobs to keep their current health insurance intact until they find new employment. There are several rules and time lines that must be followed to carry Cobra insurance. In particular, certain events allow those insured to make changes to their insurance.

Cobra Benefits

• If an employee loses her health insurance because she no longer has a job or her hours have been reduced, she may elect to continue her current health plan through the federally mandated Cobra plan. Employers with 20 or more employees are required to keep former employees on the health care program if the employee so elects. The employee must pay both the employer and employee portions of the premiums plus a monthly administration fee. Coverage is available for up to 18 months or until the worker becomes insured under another plan. Extensions of coverage are possible in the event of disability.

Initial Election Period

• An employee has 60 days from the date of the loss of coverage or the date the election notice is sent to officially elect to continue benefit coverage under Cobra. If an employees waives coverage, he can rescind the waiver and elect coverage if still within the 60 day window. Once the initial election period has passed, an employee cannot make changes to the election unless a qualifying event occurs. The employee then has 30 to 60 days -- depending on the event -- to notify the plan administrator of requested changes to coverage.

Changes to Elections

• Once coverage has been elected, an employee or a spouse or dependent of an employee can make changes only if a qualifying event occurs. If an employee becomes disabled during the coverage period, she must notify the plan administrator within 60 days of the determination of disability. Coverage may be extended to 29 months. The death of the employee or divorce allows for the spouse to notify the plan administrator within 60 days and to continue receiving coverage on her own for a period up to 36 months. If a dependent loses his dependent status, he can notify the the administrator within 60 days and keep his coverage for up to 36 months.

Termination of Coverage

• Cobra coverage ends at the end of the 18- to 36-month statutory period or if another event occurs before then. Events that can end coverage include nonpayment of premiums and obtaining health insurance coverage under an individual plan or a new group health plan. If the new plan excludes existing medical conditions, the employee may still be able to maintain Cobra coverage.