In both cases, the terms of the agreement do not apply to COBRA. This leaves open the question of whether the applicable COBRA period starts from the start of the allowance/leave or after. In such a derogation, the plans may provide for an extension of the applicable COBRA periods until the loss of coverage and not until the date of the qualifying event. As a frequent example of this rule, health plans are often designed in such a way that laid-off workers are entitled to coverage until the end of the month`s notice, with COBRA starting on the first day of the following month. In the absence of clarity in the severance pay program, a staff member may assert that this extension rule applies to the compensation situation described in Example 1. No no. An employer may require a chosen employee to pay up to 102% of the health insurance costs in order to continue coverage under COBRA. . . .