COBRA Coverage Denial: What Are Your Options?

COBRA allows you to continue employer health coverage after leaving a job, but enrollment issues, premium payment disputes, and notice failures can lead to coverage denials.

COBRA Basics

COBRA (Consolidated Omnibus Budget Reconciliation Act) lets you keep your employer health coverage for 18-36 months after a qualifying event (job loss, divorce, etc.). You pay the full premium plus a 2% admin fee.

Common COBRA Issues

  • Election notice not received — employer must provide notice within 14 days
  • Late payment — 30-day grace period after the due date
  • Coverage gap — retroactive coverage should cover from qualifying event date
  • Premium increase — COBRA premiums must match active employee rates (plus 2% admin)
  • Denial of qualifying event — employer disputes eligibility

How to Appeal

  1. Check notice requirements — employer must provide timely notice; failure creates extended election period
  2. Document payment — keep records of all COBRA premium payments
  3. File with DOL — Department of Labor enforces COBRA for private employers
  4. For late election — you have 60 days from notice to elect COBRA
  5. State continuation (mini-COBRA) — some states offer additional protections

Key Deadlines

  • Election period: 60 days from notice or loss of coverage (whichever is later)
  • Initial payment: 45 days from election
  • Subsequent payments: 30-day grace period
  • Coverage duration: 18 months (up to 36 months for some events)

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Frequently Asked Questions

Is COBRA worth the cost?

COBRA is expensive because you pay the full premium. However, if you have ongoing treatment or chronic conditions, the continuity of coverage may be worth the cost. Compare COBRA costs to marketplace plans — you may find cheaper options through healthcare.gov.

What if my employer didn't offer COBRA?

Employers with 20+ employees are required to offer COBRA. If your employer failed to provide notice, you may have extended election rights and can file a complaint with the Department of Labor.

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