COBRA
A federal law that allows workers and their families to continue employer-sponsored health insurance coverage for a limited period after losing a job or experiencing another qualifying event.
Qualifying events include: job loss (not for gross misconduct), reduction in hours, divorce, death of covered employee, and dependent aging off plan.
Coverage typically lasts 18 months (up to 36 months in some cases).
COBRA is often expensive — you pay the full premium (employer + employee share) plus a 2% admin fee.
→ Alternatives such as ACA Marketplace plans, Medicaid, or short-term coverage may be less expensive.
Also known as
Related terms
- ACA (Affordable Care Act)
A federal law (signed 2010) that expanded access to health insurance by creating the Health Insurance Marketplace, establishing income-based subsidies, and requiring insurers to cover pre-existing conditions.
- Special Enrollment Period
A window of time outside of the annual Open Enrollment Period during which individuals can enroll in or change ACA Marketplace health insurance coverage following a qualifying life event.
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Frequently asked questions about COBRA
What is COBRA?+
COBRA is a federal law. It lets you keep your job's health insurance for a while after you leave that job. This helps you and your family keep health coverage during big life changes. You usually have to pay the full cost of the insurance yourself.
Who can get COBRA coverage?+
You can get COBRA coverage if you lose your job, reduce your work hours, or have certain life events like divorce. Your dependents, like your spouse and children, can also get COBRA coverage under some conditions. It applies to most employers with 20 or more employees.
How do I sign up for COBRA?+
Your employer usually tells you about your COBRA rights after a qualifying event. They will send you information on how to choose and sign up for COBRA coverage within a certain time frame. Make sure to respond quickly to their notices.
How long can I have COBRA insurance?+
You can usually keep COBRA insurance for 18 months. Sometimes, you might be able to keep it longer, up to 36 months, depending on the reason you lost your coverage or if you have certain disabilities. This gives you time to find new insurance.