If you lose employer health coverage, COBRA lets you keep the same plan for a limited time, usually by paying the full premium. Deadlines matter.
Who qualifies
COBRA generally applies to employers with 20 or more employees. You may qualify after losing coverage because of a job loss, reduced hours, divorce, death of the covered employee or other qualifying events. Many states have mini-COBRA laws for smaller employers.
How it works
- You usually have 60 days from the date of the election notice, or from the loss of coverage if later, to elect coverage.
- You pay the full premium plus a small administrative fee.
- Coverage often lasts 18 months, and longer for some events.
- Coverage can be retroactive to the date you lost coverage once you elect and pay.
Alternatives
- A special enrollment period on the health insurance marketplace after losing coverage, which may qualify you for subsidies.
- Coverage through a spouse's plan.
- Medicaid if your income qualifies.
Steps to take
- Watch for the COBRA notice and mark the deadline.
- Compare COBRA with marketplace plans before deciding.
- Pay the first premium on time to avoid losing coverage.
- Keep proof of payment and coverage.
Frequently asked questions
Why is COBRA so expensive?
You pay the portion your employer used to cover as well.
Can I switch plans later?
You may change if the employer's plan changes or during open enrollment, subject to plan rules.