Paying premiums can be an additional and unplanned financial burden. If you choose to discontinue employer-sponsored health coverage, you will need to consider other options to pay for health coverage needs. Many individuals with disabilities deny themselves COBRA and choose Medi-Cal and/or Medicare to meet health coverage needs. Be aware that not everyone is eligible for Medi-Cal or Medicare. In some cases, using public health coverage could cost more than COBRA premiums. Also, if you are disabled and meet eligibility requirements, you may be able to have your COBRA premiums paid through Medi-Cal/HIPP or CARE/HIPP (for HIV/AIDS).

There are strict deadlines to apply, pay premiums, and maintain eligibility for continuation coverage. If you don't meet these deadlines, you could lose your coverage. If you miss a premium payment, COBRA gives you a 30 day grace period after cancellation of a policy. If your premium payments are made within the 30 days grace period, the policy will be reinstated retroactively.

When you become eligible for Medicare, whether you elect this coverage or not, you will lose your right to continue coverage through OBRA. OBRA is designed to transition you from COBRA to Medicare. When OBRA ends you should be eligible for Medicare. You will need to reconsider your health coverage options at this time.