COBRA Election & Premium Deadlines: The Exact Windows That

COBRA is one of the few benefits laws where the math is the whole battle. Miss a single calendar-date window and a former employee can lose health coverage, or your company can owe a per-day penalty. The rules come from the Consolidated Omnibus Budget Reconciliation Act of 1985 and are administered by the U.S. Department of Labor (DOL), the IRS, and the U.S. Department of the Treasury, with the Centers for Medicare & Medicaid Services (CMS) publishing the worker-facing Q&A. This guide walks through every deadline in the COBRA lifecycle and shows how a date calculator keeps you honest.

Who Owes COBRA Notices

COBRA generally applies to private-sector group health plans maintained by employers with 20 or more employees on more than 50 percent of the prior calendar year's typical business days. (Public-sector and church plans follow different rules; some states add "mini-COBRA" for smaller employers.) When a "qualifying event" occurs — most commonly termination of employment (other than for gross misconduct) or a reduction in hours — a chain of notices begins. Getting the dates right depends on knowing which party owns which clock.

The Notice Chain: 30 + 14 Days

Two notice deadlines start the process, and both run on calendar days:

• Employer to plan administrator — 30 days. When employment ends or hours drop, the employer must notify the plan administrator within 30 days. (CMS COBRA Q&A, Q10; 29 USC 1166.)
• Plan administrator to qualified beneficiary — 14 days. Once notified, the plan administrator must send the COBRA election notice within 14 days. (DOL Worker's Guide to COBRA; CMS Q&A, Q10.)

When the employer is the plan administrator — common at smaller companies — the two windows stack into a single 44-day window to get the election notice out the door. (CMS Q&A, Q10.)

The qualified beneficiary also has a notice duty for certain events they control: death of the covered employee, divorce or legal separation, or a dependent child losing eligible status. Those must be reported to the plan administrator within 60 days of the event. (CMS Q&A, Q11.)

The 60-Day Election Window

After the election notice arrives, each qualified beneficiary gets at least 60 days to decide whether to elect continuation coverage. The clock starts on the later of: (1) the date of the qualifying event, (2) the date coverage would otherwise be lost, or (3) the date the beneficiary is informed of the right to elect. (DOL, An Employer's Guide to Group Health Continuation Coverage Under COBRA; CMS Q&A, Q12.) Because every qualified beneficiary has independent election rights, a spouse can elect even if the employee does not.

Coverage is retroactive to the date of the qualifying event, so a claim filed during the gap is covered once the beneficiary elects and pays. (CMS Q&A; DOL Worker's Guide.) That retroactivity is why waiting until near the end of the 60 days is a rational strategy — but only if the premium is then paid on time.

The 45-Day Initial Premium Rule

A beneficiary does not have to pay when electing. The plan must give them at least 45 days from the date of the election to make the first premium payment. (DOL Employer's Guide; DOL COBRA FAQ; DOL eLaws.) If that initial payment is not made in full within 45 days, the plan may terminate the right to continuation coverage entirely.

Worked example: an employee's coverage ends June 30, 2026. They elect COBRA on August 15, 2026. The first premium — covering July and August — is due by September 29, 2026, the 45th calendar day after the election. The earlier loss of coverage does not shorten this window.

The 30-Day Grace Period for Ongoing Premiums

After the first payment, premiums are normally due monthly. The plan sets a due date, but must grant a minimum 30-day grace period for each payment. If full payment is not received by the end of the grace period, coverage can be cancelled. (DOL COBRA FAQ; DOL eLaws.) Plans are not required to send monthly premium notices — the beneficiary owns the calendar. If a payment is short but not significantly less than the amount due, the plan must notify the beneficiary and allow a reasonable period (30 days is the standard) to pay the difference.

How Much Can Be Charged: The 102% / 150% Caps

COBRA is not a subsidy. The plan may charge up to 102 percent of the total plan cost for similarly situated active employees — the extra 2 percent covers administration. (DOL Employer's Guide; DOL eLaws.) For beneficiaries receiving the 11-month disability extension, the plan may charge up to 150 percent of the cost during those extra months. (CMS Q&A, Q8; DOL eLaws.) Premiums may rise if plan costs rise but are generally fixed in advance of each 12-month cycle.

How Long Coverage Lasts: 18, 29, or 36 Months

The maximum coverage period depends on the qualifying event (CMS Q&A; DOL Worker's Guide):

Coverage ends early if premiums are unpaid, the employer drops all group coverage, the beneficiary enrolls in another group plan, or the beneficiary becomes entitled to Medicare after electing (with narrow exceptions). (DOL Worker's Guide.) A conversion to an individual policy may be offered in the 180 days before COBRA expires. (CMS Q&A.)

Penalties for Missing the Windows

Failure to offer COBRA carries an excise tax of $100 per day for each affected qualified beneficiary, capped at $200 per day for failures relating to a single qualifying event, under 26 USC 4980B. Plan administrators who fail to send required notices also face ERISA Title I civil penalties that are adjusted periodically for inflation. (26 USC 4980B; 29 USC 1132; eCFR civil-penalty adjustments.) Because the tax accrues for every day of noncompliance, a missed 14-day notice can compound quickly.

Calendar Days, Not Business Days

A subtle but critical point for anyone building date logic: the COBRA 60-day election, 45-day initial premium, and 30-day grace windows are measured in calendar days, including weekends and holidays. This is different from Form I-9's Section 2 rule, which counts business days (see our companion article). If you are coding a reminder system, do not silently substitute business days — you will understate the deadline and create liability. DayFig's Days Between Dates Calculator counts pure calendar days so the 45- and 60-day marks land on the right date.

How DayFig Helps Count the Windows

Whether you are an HR generalist tracking a departure or a beneficiary deciding when to elect, the same arithmetic applies:

• Add 30 / 14 / 60 / 45 days to a known event date to find each notice or payment deadline.
• Count the gap between a loss-of-coverage date and an election date to confirm you are still inside the 60-day window.
• Verify the 45th day is a true calendar day, not a business day, before you let a payment slide.

Our Days Between Dates Calculator and Date Calculator do this math without the spreadsheet risk of an off-by-one error.

Disclaimer

DayFig is a date and math tool, not a benefits, legal, or tax advisor. This article summarizes public DOL, Treasury/IRS, and CMS guidance for general understanding and is not legal, tax, or benefits advice. For your specific situation, contact the DOL Employee Benefits Security Administration (EBSA) or a qualified professional.

Sources

• U.S. Department of Labor (EBSA) — An Employer's Guide to Group Health Continuation Coverage Under COBRA
• U.S. Department of Labor (EBSA) — FAQs on COBRA Continuation Health Coverage for Employers and Advisers
• U.S. Department of Labor (EBSA) — A Worker's Guide to Health Benefits Under COBRA
• Centers for Medicare & Medicaid Services (CMS) — COBRA Continuation Coverage Questions and Answers
• U.S. Department of Labor — elaws Health Benefits Advisor for Employers (COBRA timing of payment)
• 26 USC 4980B (continuation coverage excise tax); 29 USC 1166 (notice requirements); 29 USC 1132 (civil enforcement) — via U.S. Code

Sources retrieved August 14, 2026.