How is an election of COBRA coverage made?

A qualified beneficiary is not automatically entitled to continuation coverage: The beneficiary must elect COBRA coverage within 60 days of the later of the date coverage is lost or the date that notice to the qualified beneficiary is sent. An election by a qualified beneficiary is considered to be made on the date the qualified beneficiary sends it. The 60-day election period is a minimum period, your company's plan may provide for a longer election period than 60 days.

Example 1: Roxanne is terminated on June 1 and loses her coverage under her employer's plan on that same date. The employer sends her a notice of her COBRA rights on June 15. Roxanne's election period ends on August 14. She is entitled to continuation coverage if she mails her election on August 14, even though the employer or plan administrator receives the election at a later date.

Example 2: Same facts as Example 1, except that the plan provides that its coverage ends six months after termination. Therefore, Roxanne loses her plan coverage on December 1 and she has until January 30 of the following year to elect COBRA coverage.

Each qualified beneficiary has an independent right to elect COBRA coverage. However, a covered employee or the covered employee's spouse may elect COBRA coverage on behalf of another qualified beneficiary. An election on behalf of a minor child may be made by the child's parent or legal guardian.

Example 3: Diane and her husband receive coverage under her employer's health plan. Upon Diane's termination, Diane and her husband each must be allowed to elect COBRA coverage. Diane might elect COBRA coverage while the husband declines the coverage. If Diane elects to provide COBRA coverage for both of them, that election is binding on the husband. But Diane cannot decline COBRA coverage on behalf of her spouse. So if Diane does not elect COBRA coverage on behalf of her husband, he must still be allowed to elect COBRA coverage.

A qualified beneficiary may waive (turn down) COBRA coverage initially and still revoke that waiver before the end of the election period. However, the plan need only provide COBRA coverage beginning on the date the waiver is revoked, no retroactive coverage is required.

State law may also specify a period of time within which to elect state COBRA/benefit continuation coverage. For state-specific information on electing continuation coverage see State Laws.