The COBRA Election Timeline
- 1Qualifying event occurs
- 2Employer notifies plan administrator within 30 days
- 3Plan administrator sends election notice within 14 days
- 4Qualified beneficiary has 60 days to elect COBRA
- 5If elected, coverage is retroactive to date of coverage loss
- 6Initial premium due within 45 days of election
- 7Subsequent premiums due on the first of each month (30-day grace period)
COBRA Termination Events
COBRA continuation coverage terminates before the end of the maximum coverage period if: the employer stops offering group health coverage, the qualified beneficiary fails to pay the premium within the grace period, the qualified beneficiary becomes covered under another group health plan (without a pre-existing condition exclusion), or the qualified beneficiary becomes entitled to Medicare.
Retroactive Coverage Implications
IQ Insight
COBRA's retroactive coverage feature creates a significant adverse selection risk. A qualified beneficiary who does not elect COBRA immediately can wait to see if they incur significant medical expenses during the 60-day election period — and then elect COBRA retroactively to cover those expenses. This is legal and expected. Plan for it in your COBRA premium calculations.