Keeping coverage after a job ends
COBRA lets employees (and their families) keep their group health coverage for a limited time after leaving a job or another qualifying event. It applies to employers with 20 or more employees; many states have “mini-COBRA” rules for smaller ones.
After a qualifying event — leaving a job, reduced hours, divorce, or a dependent aging off — eligible people can elect to continue the same group coverage, usually for up to 18 months (up to 36 in certain cases). They pay the full premium (both the employer and employee shares) plus up to a 2% administrative fee, which makes it pricier than active-employee coverage.
Losing job-based coverage is a qualifying life event that opens a Special Enrollment Period — so a subsidized Marketplace plan is frequently cheaper than COBRA. We help departing employees compare COBRA against Marketplace and private options so they don’t overpay.
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No. Losing employer coverage triggers a Special Enrollment Period for an ACA Marketplace plan, which — with a subsidy — is often less expensive than COBRA. Short-term plans are another bridge. We’ll compare all of them for you.