What Is COBRA?
COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that gives you the right to continue your employer-sponsored health insurance after losing coverage due to job loss, reduced hours, or other qualifying events.
Key COBRA Facts
- Duration: Up to 18 months (36 months in some situations)
- Cost: You pay the full premium — employee + employer share — plus 2% admin fee
- Election window: 60 days to elect COBRA after losing coverage
- Coverage: Same plan, same network, same doctors as your employer plan
⚠️ COBRA is expensive. The average employer pays 70%+ of premiums. On COBRA you pay everything. Check ACA Marketplace alternatives before defaulting to COBRA.
When COBRA Makes Sense
- You're mid-treatment and changing networks would disrupt care
- You expect to find a new job with benefits within a few months
- Your income is too high for ACA subsidies
- Your specific doctors are not in any Marketplace plan's network
Check ACA Subsidy Before Choosing COBRA
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