When Does COBRA Coverage Begin?

If you have group health insurance through your employer, the Consolidated Omnibus Budget Reconciliation Act of 1986 (COBRA) gives you and your covered spouse and dependents the right to continue health insurance coverage through the group plan when a qualifying event occurs. COBRA coverage begins on the date the employer's group insurance would no longer cover you because of the qualifying event.

Qualifying Events

• Qualifying events for you as the employee are that you quit your job, are fired for any reason except gross misconduct or have the number of hours you work reduced. If your spouse is covered by your insurance, qualifying events for your spouse are that you leave your job for any reason except gross misconduct, the number of hours you work are reduced, you become entitled to Medicare, you divorce or legally separate from your spouse, or you die. If your insurance covers your children, qualifying events for them include all the qualifying events for a spouse, plus loss of dependent child status under the plan rules.

How Notification Works

• If you die, leave your job, have reduced hours of employment or become entitled to Medicare, your employer must notify the health insurance plan administrator of the qualifying event within 30 days. If you divorce or legally separate from you spouse, or your child is no longer a dependent under plan rules, you must notify the plan administrator within 60 days. The plan administrator must then give you (or your spouse or child) a COBRA election notice within 14 days either in person or by first class mail.

Electing COBRA Coverage

• The plan administrator must give you (or your spouse or child) at least 60 days to elect COBRA coverage. This period is measured from the later of the date you lose coverage or the date the plan administrator gives you the COBRA election notice. If all of you are eligible for COBRA coverage, you can each make your own election without regard to what the others elect.

Considerations

• If you initially declined COBRA coverage and then decide before the end of the election period that you want coverage, you can revoke the waiver of coverage. However, rather than beginning COBRA coverage on the date the employer's group insurance no longer covered you, coverage begins on the date that you revoked the waiver.