When does a terminated employee begin their COBRA coverage?
It depends on a number of factors, including the employee’s termination date, and when they receive their notification for coverage.
It depends on a number of factors, including the employee’s termination date, and when they receive their notification for coverage.
COBRA Coverage Timeline
An employee who’s eligible for Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage must elect it within 60 days of their insurance termination date, or the date that the employee recieved their COBRA notification, whichever is later.
Say, for example, an employee is terminated on 4/25, the COBRA notice is sent on 4/27, and group insurance cancels 4/30. The Employee has until 6/30 to enroll because that’s 60 days from their termination date, which was the latest of the three.
Continued Coverage
If the employee enrolls during the 60-day period, then there’s no lapse in coverage because COBRA applies retroactively to the date that the employee loses coverage. For example, if employer-provided coverage ends on 6/30, COBRA picks up on 7/1.
Conclusion
Anyone eligible for COBRA insurance benefits has 2 months following the date of the end of their coverage, or the day they receive a COBRA notification, to enroll in a COBRA coverage plan.
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