Workplace Qualifying Events for COBRA - Quitting Your Job, Fired and Retirement
Yes, You Can Get COBRA Insurance After You Quit Your Job
The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) gives you the right to continue your employer-sponsored health insurance after leaving a job, even if you quit voluntarily.
If your former employer had at least 20 employees and you were enrolled in the health plan before you left, you are typically eligible to keep the same coverage for up to 18 months.
Whether you are leaving your job by choice or not, COBRA allows you to maintain your existing health coverage without any interruption.
What You Need to Know
- Quitting your job is a qualifying event for COBRA continuation.
- Layoff or furlough is a qualifying event for COBRA continuation.
- Retirement is a qualifying event for COBRA continuation.
- Federal COBRA law applies to employers with 20 or more employees taking part in company's group health plan.
- Some states have continuation laws called "mini-COBRA" that cover small business employers.
What If I Was Fired?
An involuntary termination like getting fired or being layed off does qualify you for COBRA continuation. Though, if your termination reason was due to gross misconduct, the employer does not have to offer health insurance continuation.
How Long Does COBRA Insurance Last After You Quit?
18 Months
Regardless if you quit, got fired, were laid off or retired you have the right to continue the employer’s group health insurance for up to 18 months. You will coordinate this benefit with the human resources department of the employer or their third-party administrator.
Depending on your circumstances you or your qualified dependents may be eligible for up to 36 months of continuing coverage.
All Workplace Qualifying Events for COBRA
There are three common qualifying events in the workplace that may make you eligible for COBRA continuation coverage:
- Voluntary Termination (Quitting Your Job): If you leave your job by choice—whether to take time off or start a new position—you may use COBRA to maintain your current health coverage until your new plan begins.
- Involuntary Termination (Layoff or Fired): If you lose your job through no fault of your own, including layoffs or terminations (excluding gross misconduct), you're typically eligible to continue your employer-sponsored health plan through COBRA.
- Retirement: If you've retired but aren't yet eligible for Medicare, COBRA can help you maintain your existing group health coverage during the transition.
How to Apply for COBRA
COBRA continuation coverage begins with the employer that provided your most recent job-based health insurance. The process generally follows these steps:
- Your former employer has up to 45 days to provide your COBRA election notice. This notice will include the cost of coverage, enrollment instructions, and payment details.
- By law, you are entitled to a 60-day election period to decide whether to continue your existing group health plan under COBRA.
When Does COBRA Coverage Begin?
Your COBRA insurance will start immediately after making your first premium payment. Once you elect to continue the employer group health plan, your benefits will be retroactive to the date your coverage would otherwise have stopped. If you have out-of-pocket expenses between the time the coverage stopped and then started, you may be reimbursed by your carrier.
Frequently Asked Questions
Yes. If you were enrolled in your employer’s health plan before quitting and your employer has 20 or more employees, you're likely eligible for COBRA continuation coverage for up to 18 months.
Yes, you can still get COBRA. Whether you were laid off or fired (as long as it wasn’t for gross misconduct), you're generally eligible to continue your employer-sponsored health insurance for up to 18 months.
After your job ends, your employer or their health plan administrator must send you a COBRA election notice within 45 days. Once you receive it, you have 60 days to decide if you want to keep your coverage. To enroll, follow the instructions in the notice and pay the required premium. Coverage can begin retroactively to the day your job-based insurance ended.
You can usually keep your employer’s health insurance for up to 18 months through COBRA.
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