How Long Does COBRA Coverage Last?
How long COBRA coverage lasts depends on what qualifying event triggered the coverage. If an employee is terminated or has their hours reduced, COBRA coverage can last for up to 18 months. For other events, it may last up to 36 months. In both cases, COBRA coverage typically begins on the day of the qualifying event, and it will be terminated early if a potential beneficiary doesn’t pay the coverage premiums.
What Businesses Must Provide COBRA Coverage?
Businesses that have at least 20 employees are typically required to provide COBRA coverage, and there are usually legal requirements to notify employees of COBRA coverage if it’s provided.
Who Pays COBRA Coverage Premiums?
COBRA coverage premiums are usually paid for by the person receiving the coverage (i.e. an employee, an employee’s family, a former spouse, or a former dependent). There are federal requirements about how much the premiums can be and how they can be billed, but the responsibility for paying for coverage typically falls to the employee or their family.