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What Happens When Cobra Coverage Expires?

The Consolidated Omnibus Budget Reconciliation Act of 1986, commonly referred to as COBRA, provides certain employees continuing health benefits for 18 months, according to the U.S. Department of Labor. In some instances, COBRA benefits may continue for an additional period. In the event COBRA coverage expires, an individual has certain options available for health coverage.

  1. Application

    • COBRA coverage is available to employees and retirees separated or given shorter hours by covered employers. In the event a disability occurs within the first 60 days of COBRA coverage, an employee and family may be entitled to an additional 11 months of coverage. In certain circumstances if a second disability event occurs COBRA may be extended up to 36 months.

    Private Options After COBRA

    • If the employer health plan offers an employee the option to convert to an individual health policy, this option must be provided to the COBRA beneficiary 180 days prior to the expiration of coverage, according to the U.S. Department of Labor.

    State Options After COBRA

    • Individuals and families with limited financial resources should contact their State Office of Insurance for information about the Children's Health Insurance Program. In addition, you may qualify for Medicaid or reduced costs under a state's affordable health care plan.

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