Early Termination Rules and Options

My husband's COBRA is too expensive! Can we sign up for my work's health plan, instead?

Once your husband elects COBRA continuation coverage, that coverage remains his health insurance option until the next open enrollment period for which he qualifies. This holds true regardless of whether the premium becomes difficult to manage. The Consolidated Omnibus Budget Reconciliation Act does not list voluntary cancellation due to cost among its recognized qualifying events.

Most group health plans hold an open enrollment period once each year during which employees may add a spouse or dependent regardless of the reason.

Are You Stuck Without Coverage?

When you're transitioning between jobs, having health insurance is important to avoid the high costs of medical expenses. If you've decided to stop COBRA a short-term medical plan vs COBRA may provide peace of mind in case of new illness or an accident.

Short-term health insurance is a popular option due to its affordability.

Need to Cancel COBRA?

You'll cancel your COBRA continuation plan with your COBRA Administrator. This is someone in the Human Resources department that the health insurance is through or the company's third-party administrator.

Your COBRA Election paperwork will have your Administrators contact information.

Early Termination by Employer

COBRA continuation coverage may end before the maximum period for the following reasons:

Premiums are not paid in full by the required due date.
The employer no longer offers any group health plan.
The qualified beneficiary obtains coverage under another group health plan after electing continuation coverage.
The qualified beneficiary becomes eligible for Medicare after electing continuation coverage.
The qualified beneficiary commits fraud or engages in behavior that would result in termination of coverage for a similarly situated individual not receiving continuation coverage.

If continuation coverage ends early, the plan must send a notice of early termination.