Can COBRA coverage be dropped early?

Yes—although COBRA coverage can last up to 18 or 36 months, it can end earlier if certain events occur.

⚠️ COBRA Can Be Terminated Early If:

  • Premiums are not paid on time
    (Including the grace period—coverage ends permanently if payment isn’t received)

  • The beneficiary becomes covered under another group health plan
    (If the new plan doesn’t have a pre-existing condition exclusion, which is rare today)

  • The beneficiary becomes entitled to Medicare
    (Coverage ends the month the person becomes enrolled in Medicare)

  • The employer stops offering any group health plan
    (If the entire plan is terminated, COBRA ends for everyone)

  • The beneficiary commits fraud or engages in misconduct
    (Example: knowingly using the plan improperly)

🧠 Important Note:

Plan administrators are required to send a notice of early termination explaining the reason and the effective date of the coverage ending.

Employer Responsibilities