Can I Get COBRA If I Quit?

If I quit my job voluntarily do I qualify for COBRA health insurance?

Yes, You Can Get COBRA Insurance After Quitting Your Job

According to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), companies with 20 or more employees are required to allow workers to keep their health insurance coverage, if that coverage would end due to a qualifying event. The coverage is to be the same employee sponsored group health plan the worker had previous to quitting their job. This protects workers, spouses and dependents with who need the same health insurance coverage.

Workplace Qualifying Events

There are three types of qualifying events in the workplace that would make you eligible for COBRA insurance, they are:

  • Voluntary Termination or Quit Your Job
  • Involuntary Termination or Fired
  • Retirement

Find out if you qualify


COBRA Eligibility

How Long Does COBRA Last After You Quit?

You may remain on your former employer’s COBRA insurance plan for up to 18 months. Depending on your circumstances you or your qualified dependents may be eligible for up to 36 months of continuing coverage.

What Is The Time Line For COBRA Coverage?

The law requires your former employer to give you a 60 day open enrollment period to choose to continue your current employer health plan or waive COBRA coverage. Your former employer has up 45 days to send you your COBRA continuing coverage election paperwork. Once you elect COBRA continuation, your benefits will be retroactive to the date your coverage would otherwise have stopped.

State Insurance Continuation Laws

If your employer has less than 20 employees, check your state’s laws regarding continuation insurance. Some states have Mini-COBRA laws that require employers with fewer employees to offer group health coverage. Depending on the state you live in, you may have a shorter time period to elect COBRA after you quit or get fired.

Does COBRA Insurance Cover Dental and Vision?

Not all employer-sponsored insurance is the same. If you need dental or vision insurance while on COBRA, there are ways to get covered.

You’ll Pay The Premium

Just remember, your last employer is not responsible for your medical bills. When you elect COBRA insurance coverage, you pay 100% of the monthly health plan premium. This means, you are responsible for both your portion and the employer subsidy. Often times, there is a 2% administration fee added.

An Alternative To COBRA

When you don’t qualify or keeping your work insurance is too expensive, many people choose short-term health insurance as an alternative to COBRA to cover gaps before their next major medical insurance. Temporary health insurance will keep you covered for new unexpected illnesses and injuries. It’s not for everyone. There are three reasons why short-term medical insurance is better than COBRA:

  1. Fast access to coverage – policies can usually start next day
  2. Flexibility & features – plans are customizable for affordability and you can cancel at anytime
  3. Plans are affordable – depending on your age and the state you live in, plans can be as low as $80/month

Save Money With Short-Term Medical Insurance / Coverage Starts Tomorrow

If you are fairly healthy and still want to remain insured, alternatives to COBRA insurance may be available based on where you live. Short-term health insurance is a popular option and available in most states. This can protect you from high medical costs of new injuries or new illnesses that unexpectedly occur while allowing you to use any licensed doctor. Coverage is available up to $1 million per person.

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