Understanding COBRA Coverage Election

Qualified beneficiaries must be given an election period during which each qualified beneficiary can choose to elect or waive COBRA coverage. Currently, the election period must be at least 60 days, measured from the later of the coverage loss date or the date on which the COBRA election notice is provided. The election period is defined in the setup programs.

Each qualified beneficiary may elect COBRA coverage independently. However, a covered employee or the covered employee's spouse may elect the coverage on behalf of all other qualified beneficiaries. A parent or legal guardian may elect coverage on behalf of a minor child.

If a qualified beneficiary chooses to waive COBRA coverage during the election period, he or she can subsequently revoke the waiver and elect coverage, provided that the election period has not ended.

You might need to make revisions to the coverage information. For example, if a participant becomes disabled during the COBRA coverage period, the length of the coverage period is extended. Premiums might also increase during the open enrollment period, so you might need to change the COBRA premium amount.

You terminate COBRA coverage at the end of the coverage period. A participant can also request to terminate the coverage before the end of the coverage period. For example, a participant who was terminated and elected COBRA coverage can cancel the coverage in the event that he or she obtains a new job that provides similar benefits.

You can review and revise COBRA coverage information for a specific qualified beneficiary, or you can review information for all beneficiaries that meet search criteria. The Coverage Review program (P08922) enables you to maintain coverage information for a qualifying event that is associated with a specific COBRA qualified beneficiary.