What is COBRA insurance?
Last updated September 3, 2026.
COBRA continues your exact employer plan after a qualifying event - up to 18 months for job loss or reduced hours, 36 months for events like divorce or death of the employee - but you pay the full premium (your share plus the employer's) plus 2 percent, per the Department of Labor. The protective mechanics: 60 days from coverage loss or your election notice (whichever is later) to elect, coverage retroactive to the day it ended, and 45 days after electing to make the first payment - so you can wait and elect only if a medical need arises. It covers private employers with 20 or more workers; smaller firms usually fall under state mini-COBRA laws. Always price a subsidized Marketplace plan before electing. Pymander is a free AI doctor, 24/7 by text, and can help you compare.
What to do
- Expect sticker shock: full premium plus 2 percent, no employer share.
- Use the 60-day election window strategically: retroactive coverage if needs arise.
- Price Marketplace first: subsidies often beat COBRA by hundreds.
- Small employer? Look for state mini-COBRA: similar idea, different rules.
Related questions
- How do I keep health insurance between jobs?
- How long do I have to enroll after losing coverage?
- What is a special enrollment period?
- What is a grace period for health insurance?