COBRA: Maximum coverage period for each qualifying event

How long must you keep an ex-employee on COBRA? COBRA regulations allow for 3 different lengths of COBRA coverage, depending on the type of qualifying event. The most common type of COBRA qualifying event is the termination of employment, which entitles the qualified beneficiary to 18 months of COBRA coverage.

If an individual is receiving an 18-month maximum period of continuation coverage, they may become entitled to an 18-month extension (giving a total maximum period of 36 months of continuation coverage) if they experience a second qualifying event that is the death of a covered employee, the divorce or legal separation of a covered employee and spouse, a covered employee’s becoming entitled to Medicare, or a loss of dependent child status under the plan. The second event can be a second qualifying event only if it would have caused a loss of coverage under the plan in the absence of the first qualifying event. If a second qualifying event occurs, the individual must notify the plan.

The rules for how to give notice of a second qualifying event should be described in the plan’s SPD (and in the election notice if the individual recieved a COBRA notice for an 18-month maximum period of continuation coverage). The plan can set a time limit for providing this notice, but the time limit cannot be shorter than 60 days from the latest of:

(1) the date on which the qualifying event occurs;

(2) the date on which you lose (or would
lose) coverage under the plan as a result of the qualifying event; or

(3) the date on which you are informed, through the furnishing of either the
SPD or the COBRA general notice, of the responsibility to notify the
plan and the procedures for doing so.

Refer to the chart below for details. Remember that an event is only a COBRA qualifying event if it causes the individual to lose coverage.

2. In certain circumstances, qualified beneficiaries entitled to 18 months of continuation
coverage may become entitled to a disability extension of an additional 11 months
(for a total maximum of 29 months) or an extension of an additional 18 months due to
the occurrence of a second qualifying event (for a total maximum of 36 months).