COBRA Rules when You Regain Medical Coverage

If an employee covered by COBRA obtains new employer-sponsored group coverage that contains a pre-existing condition exclusion, the pre-existing condition exclusion period will be reduced by the amount of time the qualified beneficiary had “creditable” coverage (if any).

Creditable coverage means any of the following:

  • Most types of health plans or insurance coverage (including employer-sponsored group plans).
  • Medicare Part A or B.
  • Medicaid.
  • Health insurance under the federal government or the U.S. Armed Forces.
  • A medical care program of the Indian Health Service or of a tribal organization.
  • A state health benefits risk pool.
  • A public health plan as defined in government regulations.
  • A health benefit plan under section 5(e) of the Peace Corps Act.

The creditable coverage is applicable to the qualified beneficiary as of the enrollment date in the new employer-sponsored group plan, as long as there has been no interruption of coverage longer than 63 days.

For additional important information, we encourage you to read: