Q & A – How can COBRA coverage be lost?

Q: How can COBRA coverage be lost?

A:  Qualified beneficiaries lose COBRA continuation coverage when:

  • The employer terminates its health plan.
  • Beneficiaries fail to pay their premium by the end of the applicable grace period.
  • Coverage begins under another employer’s plan, unless a beneficiary has a preexisting condition not covered under the new group health plans.
  • Beneficiaries enroll in Medicare after the date of their COBRA election may lose their COBRA eligibility.
  • Social Security Administration makes a final determination that a qualified beneficiary is no longer disabled, unless exceptions exist.