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COBRA Ending Soon?

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COBRA Expiring? Your Complete Transition Guide

Your COBRA or Cal-COBRA continuation coverage is ending, and you need a plan for what comes next. This guide explains your 60-day special enrollment window, how to transition to Covered California with subsidies, and how to avoid a gap in coverage.

Important: You have exactly 60 days from your COBRA expiration date to enroll in Covered California through a Special Enrollment Period. Don't miss this deadline — start planning your transition now.

Understanding COBRA Expiration

COBRA (Consolidated Omnibus Budget Reconciliation Act) provides temporary continuation of employer health coverage after certain qualifying events. However, this coverage has a fixed expiration date that cannot be extended in most cases.

COBRA Duration Limits

18

Months - Standard

Job loss, reduced hours, or voluntary/involuntary termination

29

Months - Disability

If you become disabled within 60 days of COBRA starting

36

Months - Extended

Divorce, death of employee, Medicare eligibility, or dependent aging out

Cal-COBRA: California's Extension

California law provides additional protection through Cal-COBRA:

  • Applies to smaller employers: Companies with 2-19 employees not covered by federal COBRA
  • Duration: Up to 36 months of continuation coverage
  • Extension: If you exhausted 18 months of federal COBRA, Cal-COBRA can extend coverage for an additional 18 months (36 total)
  • Cost: Up to 110% of group premium rate
Key Point: When COBRA or Cal-COBRA expires, you have exactly 60 days to enroll in Covered California through a Special Enrollment Period. This is a hard deadline with no exceptions.

When Does Your COBRA End?

Knowing your exact COBRA expiration date is critical for planning your transition. Here's how to calculate it and what notices to expect.

How to Calculate Your Expiration Date

Your COBRA coverage starts:

  • The day after your employer coverage ends (not when you elected COBRA)
  • Count forward 18 months (or applicable period) from that date

Example: If your employer coverage ended January 31, 2025, your 18-month COBRA expires July 31, 2026.

COBRA Termination Notice

Your COBRA administrator must send you a termination notice. However:

  • Federal COBRA: No specific notice requirement before expiration
  • Cal-COBRA: Notice required 90 days before termination
  • Don't wait for notices: Calculate your end date and plan ahead

Early Termination Events

Your COBRA may end before the maximum period if:

You Lose Coverage If:

  • Premium payment is more than 30 days late
  • Employer terminates all group health plans
  • You become covered under another group plan
  • You become entitled to Medicare
  • You commit fraud or are not truthful

Coverage Continues If:

  • You voluntarily drop other coverage to stay on COBRA
  • Your spouse or dependents stay on COBRA after you leave
  • Premium is paid within the grace period
  • Employer switches carriers (plan continues)
Important: Even if you become eligible for Medicare, your dependents may still be able to continue COBRA for up to 36 months from the original qualifying event.

Your 60-Day Special Enrollment Window

When your COBRA coverage exhausts (reaches its maximum duration), you qualify for a Special Enrollment Period (SEP) to enroll in Covered California health insurance outside of Open Enrollment.

COBRA Expires

Your 60-day window begins on the last day of COBRA coverage

Days 1-60

Apply for Covered California and select a health plan

After Day 60

SEP closes - must wait until Open Enrollment

Key Requirement: COBRA Exhaustion

Critical distinction: You only qualify for this Special Enrollment Period if your COBRA coverage exhausts (reaches its maximum term). If you voluntarily cancel COBRA early, you do NOT qualify for a SEP.

Scenario SEP Eligible? Next Step
COBRA reaches 18/29/36 month limit Yes 60 days to enroll in Covered California
Employer terminates entire group plan Yes 60 days to enroll in Covered California
You voluntarily cancel COBRA No Wait for Open Enrollment
COBRA terminated for non-payment No Wait for Open Enrollment
Pro Tip: If you want to transition to Covered California before your COBRA expires, you can switch during the annual Open Enrollment period (November 1 - January 31) without needing a qualifying event.

COBRA vs Covered California Costs

Most people discover that Covered California is significantly cheaper than COBRA due to income-based subsidies. Here's a side-by-side comparison.

Example: 55-Year-Old Individual in San Francisco

Coverage Option Monthly Premium Annual Cost Subsidies?
COBRA (continuation) $850 $10,200 Not available
Covered CA Silver 70 ($45K income) $125 $1,500 $725/month subsidy
Annual Savings: $8,700 (85% less!)

Example: Family of 3 in Los Angeles

Coverage Option Monthly Premium Annual Cost Deductible
COBRA (family) $2,100 $25,200 $3,500 family
Covered CA Silver 70 ($75K income) $385 $4,620 $5,000 family
Annual Savings: $20,580!

When COBRA Might Be Worth Keeping

Mid-Treatment

If you're in the middle of cancer treatment, surgery, or pregnancy with specific doctors, staying on COBRA until treatment completes may avoid disruption.

High Income

If your household income exceeds ~$83,000 (single) or ~$170,000 (family of 4), subsidies are minimal and unsubsidized Covered CA may be similar cost to COBRA.

Specialist Network

If you need specific specialists only available in your employer's network and they're not in any Covered CA plan, COBRA maintains access.

Specialty Medications

Expensive specialty drugs may have different coverage tiers on Covered CA plans. Compare formularies before switching.

Check Your Potential Savings

Use our calculator to see exactly how much you could save with Covered California subsidies based on your income.

Get Your Quote

Step-by-Step Transition Guide

Follow this checklist to ensure a smooth transition from COBRA to Covered California.

1

Confirm Your COBRA End Date

Contact your COBRA administrator or check your COBRA election notice for the exact expiration date. Mark it on your calendar with reminders at 60, 30, and 14 days before.

2

Gather Required Documents

Prepare your COBRA termination/exhaustion letter, Social Security numbers for all household members, proof of California residency, and income documentation (tax return, pay stubs).

3

Calculate Your Estimated Income

Estimate your total household Modified Adjusted Gross Income (MAGI) for the coverage year. Include wages, self-employment, investment income, and taxable Social Security.

4

Apply for Covered California

Start your free application or work with a licensed agent (free service). Select "Lost or will lose health coverage" as your qualifying event.

5

Compare Plans and Select

Compare Bronze, Silver, Gold, and Platinum plans. Check if your current doctors are in-network. Review prescription drug formularies for your medications.

6

Complete Enrollment and Pay

Choose your coverage effective date (should be the day after COBRA ends to avoid gaps). Pay your first premium promptly - coverage doesn't start until you pay!

Expert Help Available: Our licensed agents can guide you through this entire process at no cost. We'll help you compare plans, maximize subsidies, and ensure seamless coverage.

Avoiding Coverage Gaps

A gap in health coverage can expose you to California's individual mandate penalty and leave you unprotected. Here's how to ensure continuous coverage.

Timing Your Transition

If your enrollment is submitted before the end of the month and your application and documents are in order, coverage starts on the 1st of the following month.

Example: COBRA ends March 31. Complete your enrollment any time in March → Covered California coverage starts April 1 (no gap). Start your application now to ensure a seamless transition.

Strategies to Prevent Gaps

Plan Ahead

  • Start your Covered CA application 30-45 days before COBRA ends
  • Don't wait until the last minute
  • Account for application processing time

Choose Effective Date Wisely

  • Select a start date that aligns with your COBRA end date
  • Request prospective coverage from the day after COBRA ends
  • Verify the effective date before confirming

Pay Promptly

  • Your coverage doesn't begin until you pay the first premium
  • Pay immediately upon enrollment
  • Set up auto-pay to avoid future lapses

Work With an Agent

  • Agents ensure paperwork is complete
  • Can help expedite processing
  • Free service - no cost to you
California Individual Mandate: California requires most residents to have health insurance. Gaps in coverage can result in penalties of up to $900 per adult and $450 per child when you file your state taxes.

Documentation Needed

To prove your Special Enrollment eligibility due to COBRA exhaustion, you'll need specific documentation.

Required Documents

COBRA Exhaustion Proof

  • COBRA termination letter
  • Certificate of Creditable Coverage
  • Letter showing coverage end date
  • Final COBRA billing statement

Identity Documents

  • California driver's license or ID
  • Social Security cards for all applicants
  • Immigration documents (if applicable)
  • Birth certificates for dependents

Income Documentation

  • Most recent federal tax return
  • Recent pay stubs (last 4 weeks)
  • Self-employment records
  • Investment/retirement income statements

Residency Proof

  • Utility bill with California address
  • Lease or mortgage statement
  • Bank statement with address
  • California vehicle registration
Can't Find Your COBRA Letter? Contact your former employer's HR department or the COBRA administrator to request a certificate of creditable coverage or termination letter.

Countdown Timeline: Actions Before COBRA Expires

Use this timeline to prepare for your transition from COBRA to Covered California.

60

Days Before - Research Phase

  • Calculate your estimated annual income
  • Check which doctors/hospitals you need
  • List all medications and verify formulary coverage
  • Get quotes from Covered California
  • Schedule a call with a licensed agent
30

Days Before - Application Phase

  • Gather all required documentation
  • Start your Covered California application
  • Select qualifying event: "Lost health coverage"
  • Enter COBRA end date as your coverage loss date
  • Review available plans and subsidies
14

Days Before - Decision Phase

  • Finalize plan selection
  • Confirm coverage effective date
  • Complete enrollment
  • Upload proof of COBRA exhaustion
  • Verify all information is correct
7

Days Before - Activation Phase

  • Pay your first premium
  • Receive enrollment confirmation
  • Set up auto-pay for future premiums
  • Contact your new insurance carrier
  • Request ID cards
0

COBRA Expiration Day

  • COBRA coverage ends at midnight
  • Covered California coverage should begin the next day
  • Verify coverage is active with your new carrier
  • Print temporary ID card if needed
Don't Procrastinate: Even though you have 60 days after COBRA ends, waiting until the last minute risks coverage gaps. Start the process at least 30 days before your COBRA expires.

Don't Let Your COBRA Run Out Without a Plan

COBRA expiration is a critical deadline. Our licensed agents can help you transition to Covered California, maximize your subsidies, and ensure continuous coverage - all at no cost to you.

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