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How Soon Must One Apply for COBRA Coverage?

The federal COBRA health coverage continuation law applies to employers with 20 or more employees. Under COBRA, you or your spouse can apply for temporary continuation of your employer's group health plan if your coverage will terminate because you've lost your job, been downgraded from full time to part time status, became eligible for Medicare or died while employed. You'll have 60 days to apply, but certain preliminary events must occur before you can submit your COBRA application.

  1. COBRA Notice

    • Your employer must notify the company's health plan administrator of your job loss, downgrade, Medicare eligibility or death within 30 days of the event, says the U.S. Department of Labor website. The plan administrator must send a COBRA election notice to you (or your surviving spouse) within 14 days of receiving the qualifying event notification. You (or your spouse) can apply immediately upon receiving the election notice. You will have at least 18 months of continued coverage, at your own expense.

    Application Deadline

    • Once you get your COBRA election notice, you (or your surviving spouse) will have 60 days to make the COBRA coverage election, measured from the later of the coverage termination date or the date the COBRA election notice was provided to you. If you chose to waive COBRA coverage but your spouse wanted it, you can rescind your waiver before the end of the 60-day election period. Then your spouse can apply for COBRA coverage, which would be effective beginning on the date you rescinded your coverage waiver.

    Who Can Apply

    • In order to apply for COBRA coverage, you must have been an active employee enrolled in your employer's group health plan at the time of separation, demotion or Medicare eligibility. Or, in the case of your death, your surviving spouse can apply for COBRA coverage. The employer's health plan for active employees must remain in effect during your COBRA coverage. Once you are accepted for coverage, you will have 45 days to pay the initial premium. That premium will be much higher than you paid while employed because you will also be paying the portion your employer used to pick up.

    Denial Appeal Deadline

    • If you decide to take COBRA coverage, your health plan will tell you the claim filing procedure. But if your application is denied, says the U.S. Department of Labor website, you will have the right to appeal. The written denial notice must state the reasons for denial, the evidence supporting the denial, and procedures for appealing the denial. You will have 60 days from the date of denial to appeal, and should receive a decision on appeal within 60 days of filing.

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