Short answer – yes. You are not obligated to accept coverage under your new Small Business, even if you don’t have an alternative COBRA option. Furthermore, you rights to remain in COBRA is not affected the availability of other options. It is rare that your COBRA option would be less costly to you than the option of being insured under a new Small Business plan. This is because for COBRA, you are responsible for 100% of the monthly premium. Under an active group health plan, your employer must be responsible for at least 50% of the monthly premium. - Wednesday, November 18, 2009 @ 2:25 pm