COBRA:

How long may I keep COBRA coverage?

Depending on the circumstances, the coverage may be kept for up to 18, 29, 36 months (or potentially even for life for certain retirees of bankrupt companies) under federal law — state law may expand benefits in some cases.


The following chart shows the length of coverage under federal COBRA rules depending on whether the individual is the employee or spouse or child of the employee:


Employee / Former Employee:
QUALIFYING EVENT DURATION OF COBRA COVERAGE
Reduction in Hours 18 months
Termination of Employment* 18 months
Bankruptcy of Former Employer (for Retiree) For life (subject to decision of the Bankruptcy Court)
Disabled as determined by the Social Security Administration on or before 60 days after Qualifying Event Date*** Up to 29 months if still disabled


Spouse of Employee / Former Employee:
QUALIFYING EVENT DURATION OF COBRA COVERAGE
Death of Spouse (i.e., the employee) 36 months.
Termination of Employment of Spouse (i.e., the employee)* 18 months.
Divorce or Legal Separation 36 months.
Spouse (i.e., the employee) Becomes Entitled to Medicare (if prior to experiencing a Qualifying Event that is the termination, or reduction in hours, of employment) 36 months from spouse’s date of Medicare entitlement or, if longer, 18 months from the spouse’s Qualifying Event date (29 months if there is a disability extension).
Spouse of Retiree of Bankrupt Former Employer 36 months beyond the life of the retiree (subject to decision of the Bankruptcy Court).
Second Qualifying Event** 36 months.
Disabled as determined by the Social Security Administration on or before 60 days after Qualifying Event Date*** Up to 29 months if still disabled


Dependent Child of Employee / Former Employee:
QUALIFYING EVENT DURATION OF COBRA COVERAGE
Death of Parent (i.e., the employee) 36 months.
Termination of Employment of Parent (i.e., the employee) * 18 months.
Reduction in Hours of Employment of Parent (i.e., the employee) 36 months.
Parent (i.e., the employee) Becomes Entitled to Medicare (if prior to experiencing a Qualifying Event that is the termination, or reduction in hours, of employment) 36 months from parent’s date of Medicare entitlement or, if longer, 18 months from the parent’s Qualifying Event date (29 months if there is a disability extension).
Child of Retiree of Bankrupt Former Employer 36 months beyond the life of the retiree (subject to decision of the Bankruptcy Court).
Second Qualifying Event** 36 months.
Divorce or Legal Separation of Parents 36 months.
Dependent Child Ceases to be Eligible Under the Group Health Plan 36 months.
Disabled as determined by the Social Security Administration on or before 60 days after Qualifying Event Date*** Up to 29 months if still disabled.



* The law does not require that COBRA coverage be made available if an employee is terminated for “gross misconduct.”

** If a spouse of dependent child has already started 18 months of COBRA continuation coverage when an event that would allow 36 months occurs, the maximum duration will increase to 36 months. In no case may the total amount of continued coverage be more than 36 months. Medicare entitlement is not considered a second Qualifying Event unless it would serve as a first Qualifying Event (i.e., would result in loss of coverage under the group health plan), which is not common.

*** If a Qualified Beneficiary is eligible for the extension to 29 months due to disability, the other family members on COBRA are also eligible for the same extension. Please note that you must notify the plan administrator within 60 days of the determination of your disability status by the Social Security Administration.

What are the Qualifying Events that make one eligible for COBRA?

For Employee / Former Employee:
  • Reduction in your hours of employment or the termination of your employment (for reasons other than gross misconduct on your part); and
  • Or if you are a retiree and your employer has filed for Chapter 11 reorganization.

Note: Since 2000, reduction in hours followed by an increase in employee contribution has also been deemed a qualifying event to allow COBRA coverage to be taken. At the same time retiree coverage under a bankruptcy has been amended to include a substantial elimination of coverage within 12 months before or after the date bankruptcy proceedings began.

For Spouse of Employee / Former Employee:

  1. The death of your spouse.
  2. A termination of your spouse’s employment (for reasons other than gross misconduct), or reduction in your spouse’s hours of employment.
  3. Divorce or legal separation from your spouse.
  4. Your spouse becomes entitled to Medicare benefits (if loss in coverage occurs).
  5. Your spouse is a retiree and your spouse’s employer files for Chapter 11 reorganization.

For Dependent Child of Employee / Former Employee:

  1. The death of a parent.
  2. The termination of a parent’s employment (for reasons other than gross misconduct) or reduction in a parent’s hours of employment.
  3. Parent’s divorce or legal separation.
  4. A parent becomes entitled to Medicare benefits and would lose group coverage (if loss in coverage occurs).
  5. The dependent ceases to be a “dependent child” under the group health plan.
  6. The parent is a retiree and the parent’s employer files for Chapter 11 reorganization.

Note: If, as an employee, you go out on a qualified leave under the Family and Medical Leave Act of 1993, special rules apply. The COBRA Qualifying Event will not start until you notify the company, during the leave period, that you will not be coming back or if you do not return at the end of the leave period.

Under the law, the employee or a family member has the responsibility to inform the Human Resource Department of your employer (or former employer) of a divorce, legal separation, or a child losing dependent status under the group health plan within 60 days of this Qualifying Event. There is also a60-day notification requirement for informing the Plan Administrator of a disability award from the Social Security Administration to qualify for the possible disability extension.

What is COBRA coverage?

COBRA is an acronym for the federal law, the Consolidated Omnibus Budget Reconciliation Act of 1985. It applies to most businesses that have twenty or more employees on an average business day for that company in the prior calendar year. (Some states have similar laws for smaller employers.)

The law is designed to allow eligible employees and/or their covered dependents to continue certain health-related group benefits when coverage is lost for a number of reasons.

Note: The law does not require that COBRA coverage be made available if an employee is terminated for “gross misconduct.”

To see when COBRA coverage is available, see the answer to the question:

What are the Qualifying Events that make one eligible for COBRA?

Depending on the circumstances, the coverage may be kept for up to 18, 29 or36 months (or potentially even for life for certain retirees of bankrupt companies) under federal law; state law may expand benefits in some cases.

For more detailed information on how long COBRA may be kept, see the answer to the question:

How long may I keep COBRA coverage?

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