How Long Can You Keep Cobra Insurance?
COBRA continuation coverage is designed as a bridge, offering temporary health insurance when group benefits end. Yet many HR leaders and employees alike wonder how long COBRA actually lasts. The answer isn’t always as simple as “18 months.” While that’s the most common duration, extensions and state-specific rules can stretch or shorten timelines.
For employers, this means it’s critical to understand the range of coverage periods, the factors that affect eligibility, and what happens once COBRA ends.
Whether you’re an HR director overseeing compliance or a small business owner navigating state continuation, the length of COBRA coverage matters because missed deadlines or miscommunication can lead to costly penalties and gaps in care.
Who Qualifies for COBRA Insurance Continuation
COBRA doesn’t apply to every situation, but several common life events make individuals eligible. Qualifying events typically include voluntary resignation, involuntary job loss (unless it’s for gross misconduct), or a significant reduction in work hours that causes an employee to lose benefits. Dependents may qualify if a marriage ends in divorce or legal separation, if the covered employee passes away, if a child ages out of dependent status under the health plan, or the employee goes on Medicare.
For HR teams, the key is that eligibility for COBRA depends on losing group coverage through one of these defined events. If the event is covered under COBRA rules, the clock begins ticking immediately. That’s why eligibility is closely tied to how long COBRA coverage can last, and why precise communication with employees and their families is so important.
Typical Duration Limits for COBRA Coverage
The standard COBRA insurance duration is 18 months for employees and dependents who lose coverage due to termination or reduction in work hours. This is the baseline period most people think of when they ask, “How long can you keep COBRA insurance?”
Certain events, however, extend coverage up to 36 months. This typically applies to dependents experiencing the loss of coverage – like divorce, legal separation, Medicare entitlement, or a child aging out of dependent status. Importantly, the duration is measured from the date of the loss of coverage, not from when COBRA coverage is elected. That means an employee who waits 59 days to enroll still only has the remainder of the 18 months available. Employers should keep accurate records of qualifying event dates to ensure timelines are calculated correctly.
Situations That Can Extend COBRA Coverage Periods
While 18 months is the standard, some circumstances allow COBRA continuation to stretch further. A major example is disability. If a qualified beneficiary is determined by the Social Security Administration to have become disabled within the first 60 days of COBRA coverage, they may extend coverage to 29 months.
Another extension scenario involves a second qualifying event. For instance, if an employee is terminated and their spouse later experiences a divorce during COBRA coverage, the spouse’s coverage could be extended to 36 months.
Military leave under the Uniformed Services Employment and Reemployment Rights Act (USERRA) can also affect COBRA timelines, requiring employers to coordinate rules carefully. HR leaders should track these extensions meticulously, since eligibility depends on proper documentation and notice. A recommended best practice is to work with a COBRA administrator who can automatically flag potential extensions.
How State Laws May Affect COBRA Coverage Length
Federal COBRA only applies to employers with 20 or more employees, but smaller employers are often subject to “Mini-COBRA” laws at the state level. These state continuation rules vary widely, creating confusion for small business owners.
For example, New York offers continuation coverage for up to 36 months, while California’s Cal-COBRA allows individuals to continue coverage for an additional 18 months after federal COBRA expires, creating a total of 36 months. Other states provide shorter extensions, sometimes only a few months.
For businesses under 20 employees, confirming local continuation laws is crucial, since missing them could lead to fines. Small business owners should seek guidance from their insurance carriers or legal advisors, as state requirements can differ dramatically.
Important Deadlines to Keep in Mind for COBRA Enrollment
The effectiveness of COBRA coverage doesn’t just depend on qualifying events—it also hinges on meeting strict deadlines. Employees and dependents have 60 days from the date of notice (or the loss of coverage, whichever is later) to elect COBRA. Once elected, the first premium must be paid within 45 days, and ongoing payments must be made monthly, usually with a 30-day grace period.
Employers, meanwhile, have obligations too. They must notify plan administrators within 30 days of the qualifying event, and administrators generally have 14 days after that to send election notices.
Altogether, this creates a maximum 44-day window for employees to receive their COBRA notice. Missing these deadlines risks compliance penalties and may leave employees without coverage. Maintaining a calendar system or outsourcing notices can significantly reduce those risks.
What Happens When Your COBRA Coverage Ends
When COBRA continuation coverage runs its course, individuals lose access to group health plan rates. That means out-of-pocket costs for medical care can rise dramatically if there’s no new insurance in place. Employers should communicate clearly with participants about their COBRA insurance end date to prevent sudden coverage gaps.
For HR managers, it’s helpful to remind participants that COBRA isn’t intended to be permanent—it’s a temporary bridge. Once coverage ends, former employees and dependents must transition to other options, whether through a new employer plan, the Marketplace, or public programs like Medicaid.
Options for Health Insurance After COBRA Coverage Ends
Fortunately, several alternatives exist once COBRA coverage expires. One of the most common is enrolling in a health plan through the ACA Marketplace, which offers a special enrollment period when COBRA ends. Premium tax credits may make Marketplace plans more affordable than COBRA.
If an individual starts a new job, they may transition directly into that employer’s health plan. Others may qualify for Medicaid, depending on income and state rules. For those seeking temporary coverage, short-term health plans may provide a stopgap option, though benefits are often limited.
Employers can play a supportive role by pointing participants toward these resources early. Providing links to Healthcare.gov or state exchanges, for example, helps individuals prepare well before their COBRA insurance duration runs out.
Managing COBRA Coverage with Confidence
So, how long does COBRA last? For employees who experienced the loss of coverage either due to termination or reduction of hours the answer is 18 months, with possible extensions to 29 or 36 months depending on circumstances. When the loss of coverage is experienced by a dependent, they are entitled to 36 months. State extension laws can add more time, however, 36 months is the maximum time someone can stay on CORA, regardless of any circumstances. What doesn’t change is the need to track qualifying events, deadlines, and notice requirements with care.
For HR leaders, it can be a heavy lift to manage these timelines without support. That’s why many organizations turn to CobraHelp for reliable Cobra administration services. Our team specializes in managing compliance from start to finish, reducing stress and eliminating guesswork.
Ready to simplify COBRA compliance? Contact us today to see how we can help.
