COBRA Continuation of Health Benefits
Learn about eligibility, how to apply, find support and your options for health coverage between jobs.
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What Is COBRA Insurance?
COBRA, short for the Consolidated Omnibus Budget Reconciliation Act, is a federal law that lets employees and their families temporarily keep their employer-based health insurance after certain life changes, like losing a job or working fewer hours. It offers a limited-time option to stay on your previous plan while you look for new coverage.
Getting Started with COBRA
- COBRA Eligibility – Find out if you qualify for COBRA coverage.
- Apply For COBRA – Learn the steps to apply for COBRA coverage.
- Cost Of COBRA Insurance – Understand the costs associated with COBRA insurance.
- Customer Service – Get assistance with your medical insurance options.
FAQs on Beginning COBRA Continuation
Manage Your COBRA Plan
- Account Login – Access your COBRA insurance account online.
- Make a Premium Payment – Depending on the plan, online or by mail.
- Canceling Coverage – Steps to cancel your COBRA insurance coverage.
- Verify Coverage – How to verify coverage if denied by provider or pharmacy.
FAQs on Managing Your COBRA
How Does COBRA Work?
COBRA gives you and your family the right to keep your employer-sponsored health insurance after a major life event, like voluntary and involuntary termination or a reduction in work hours. This federal law applies to employers with at least 20 employees on more than half of their typical business days during the previous calendar year.
Should you choose to elect COBRA you can continue using the same group health plan your employer offered—keeping access to your doctors, prescriptions, and coverage for ongoing care. Your dependents can usually stay covered, too.
The coverage typically lasts up to 18 months, but in some situations—such as divorce or death of the covered worker—it can be extended to 36 months.
What qualifies you for COBRA insurance?
If you lose job-based health insurance due to a major life event—like getting laid off, going part-time, divorce, or the death of a covered employee—you may be eligible for COBRA. These are known as qualifying events.
When will you receive your COBRA election notice?
You should receive your COBRA election notice within 45 days of the qualifying event. Your former employer has up to 30 days to notify the company’s health benefits administrator—which may be someone in HR or an outside COBRA administrator—about your qualifying event. From there, the administrator has up to 14 more days to send you the official election notice that explains your rights, deadlines, and how to enroll.
How long do you have to decide on COBRA?
You get 60 days to enroll in COBRA after receiving your election notice. If you don’t act in that time, you lose the right to coverage. Learn how to act within the COBRA election period.
When is your first COBRA payment due?
After you sign up for COBRA, you have 45 days to send your first payment. If you miss this deadline, your coverage could be canceled. Check out our guide on how and where to pay.
When does COBRA coverage actually begin?
Your COBRA coverage starts retroactively on the day your employer-sponsored insurance ended. That means if you enroll and pay on time, you’ll avoid any lapse. Here’s more on the start date rules.
How long can COBRA insurance last?
Standard COBRA coverage lasts up to 18 months. But some cases—like disability or a second qualifying event—can extend it to 36 months. Learn the full details in our article on how long COBRA lasts.
Why Is COBRA Considered Expensive?
The most common feedback about COBRA insurance is that it is considered expensive. This is because individuals are required to pay the full cost of their health insurance premium, which was previously subsidized by their employer, plus an administrative fee of up to 2%. As a result, monthly premiums typically range from $400 to $700 per individual, depending on the plan and coverage.
COBRA Eligibility Check
Eligibility for COBRA coverage can be easily determined. Take a quick eligibility survey to check if the requirements for continuing employer-sponsored health coverage are met.
Availability of Mini-COBRA in Select States
In many states, businesses with a workforce of 19 or fewer employees are obligated to offer continued health insurance coverage to former employees, similar to the federal COBRA regulations. Please be aware that the deadlines and time frames for making a decision about coverage may differ based on state laws.
Find your state in the COBRA State-by-State Guide.
Getting Help with COBRA Options
Consider reaching out to a COBRA Advisor to discuss specific needs and identify the right temporary coverage.
Who We Are
COBRAinsurance.com is a resource for understanding COBRA continuation coverage, including how it works, how to enroll, and how to manage an existing plan.
This website also highlights other health insurance options that may be suitable for individuals and families between employer-sponsored plans.
Exclusions from COBRA Eligibility
While COBRA provides a continuous health coverage for many employees, certain groups and circumstances are not covered by COBRA continuation laws. Federal COBRA applies only to private-sector employers with 20 or more employees, leaving some individuals ineligible for coverage. Additionally, certain employers and situations are excluded from COBRA coverage:
- Federal Employees: Workers employed by the federal government are not covered under COBRA but may have similar rights under separate federal laws, such as the Federal Employees Health Benefits (FEHB) program.
- Church Employers: Organizations considered church employers are exempt from federal COBRA requirements.
- Small Employers: Businesses with fewer than 20 employees are not required to offer COBRA continuation coverage under federal law.
- Gross Misconduct Exception: Employees terminated due to gross misconduct are not eligible for COBRA coverage.
How To Get Health Insurance Between Jobs
Securing health insurance during a period of transition between jobs helps prevent unexpected medical expenses. Reviewing available options can provide uninterrupted coverage until new employment begins.
Here are three ways to remain insured between periods of employment:
- Continuing Current Coverage: COBRA allows individuals to maintain their existing health insurance plan without exclusions or pre-existing condition limitations. This option ensures access to medical care and prescriptions under the same coverage terms as the previous employer-sponsored plan.
- Affordable Marketplace Plans: The Affordable Care Act (ACA) marketplace offers comprehensive plans that are similar to employer-sponsored insurance. Many individuals qualify for federal subsidies, making these plans a cost-effective alternative. Marketplace plans also have limited enrollment periods following qualifying events.
- Short-Term Coverage: Short-term health plans provide temporary month-to-month coverage and can be a practical solution for those in good health or waiting for new employer-sponsored insurance to begin. Explore short-term health plans.
About Choosing Alternatives to COBRA
For those exploring more affordable alternatives, options like short-term health insurance plans, Affordable Care Act (ACA) marketplace coverage, or Medicaid may provide cost-effective solutions depending on individual circumstances. These alternatives, along with COBRA, offer ways to maintain health insurance during gaps between jobs.
Evaluating these options can help identify the most suitable coverage to meet healthcare and budgetary needs during transitional periods.
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*Eligibility for short term medical insurance is based on age and state availability.
