What COBRA actually is
COBRA is not insurance. It is a right — the right to stay on the exact group health plan you already had after you would otherwise lose it. Same plan, same network, same doctors, same deductible you have already partly paid down this year.
The catch is the price. While you were employed, your employer was paying most of your premium and you probably never saw that number. Under COBRA you pay the whole thing — your old share plus your employer's share plus a 2% administrative fee, which is where the 102% figure comes from.
The clocks that matter
Who it applies to
Employers with 20 or more employees, plus state and local government plans. Federal employee plans and church plans are excluded. Smaller employers are not covered by federal COBRA, though most states have their own "mini-COBRA" law that works similarly — the details vary state by state.
The count is less obvious than it looks: it is 20 or more employees on more than half of the typical business days in the previous calendar year, and part-time staff count as a fraction of a full-time employee rather than as whole people. A business that hovers around the threshold may be covered in one year and not the next, so if you are near the line, ask rather than assume.
How long it lasts
| Qualifying event | Duration |
|---|---|
| Job loss (not for gross misconduct) or reduction in hours | 18 months |
| The above, plus an SSA-determined disability | 29 months |
| Divorce or legal separation, death of the covered employee, employee becoming entitled to Medicare, or a child aging off the plan | 36 months |
During the 11-month disability extension the plan may charge 150% of the premium rather than 102%.
Start here
Most people arrive with one of these questions.
How much does COBRA cost?
Why the number is so much bigger than your payslip suggested — and the one lever that cuts it.
COBRA cost calculator
Your own number, from your election notice — or an honest estimate from an old payslip.
Is COBRA worth it?
Four situations where it is, and the cancellation mistake that leaves people uninsured.
Is COBRA retroactive?
Yes — and it turns the weeks after losing coverage into a decision window rather than a gap.
COBRA or a marketplace plan?
The real comparison, including the part almost nobody explains: the two 60-day clocks run at the same time, not one after the other.
What happens if I turn COBRA down?
Declining is a real option. But the timing rules are unforgiving, and one common move leaves people with no coverage at all.
The 45-day payment window
You can elect COBRA and not pay immediately. Understanding this correctly gives you weeks of breathing room.
When COBRA runs out
Exhausting it opens a door that canceling early would have closed.
COBRA and Medicare at 65
COBRA does not delay Part B. The penalty that creates is permanent.
Missed the deadline?
Check the dates before assuming — and the other window still running.
Paying COBRA from an HSA
One of the few premiums an HSA can pay tax-free.
COBRA after a divorce
36 months, not 18 — and one deadline that is entirely yours to meet.
COBRA after a cut in hours
You do not have to lose the job. Losing plan eligibility is enough.
The disability extension
18 months becomes 29, for the whole household, at 150% of the premium.
Common questions
How much does COBRA cost per month?
You pay the entire group premium plus a 2% administrative fee — 102% of what the coverage actually costs. Because most employers pay the majority of the premium for active employees, the number is usually far higher than what was coming out of your paycheck. Nationally the average is roughly $793 a month for single coverage and $2,294 for a family, but your figure is specific to your former employer's plan and will be stated on your election notice.
How long do I have to decide?
You have 60 days, counted from the later of the date your coverage ended or the date your COBRA election notice was provided. You do not have to decide on day one, and there is a good reason not to rush — see our page on the 45-day payment window.
Does COBRA start immediately, or is there a gap?
There is no gap. COBRA coverage is retroactive to the day your employer coverage ended. If you elect in week six and pay, any care you received in weeks one through five is covered under the plan's normal terms.
What if my employer has fewer than 20 employees?
Federal COBRA does not apply, but most states have a mini-COBRA or state continuation law that provides something similar. Duration and eligibility vary considerably by state, so this is worth confirming for your specific situation.
Can I keep COBRA and switch later?
Once you elect COBRA you generally stay on it until it runs out, you get other coverage, or the next Open Enrollment period. Voluntarily dropping it partway through does not create a right to enroll elsewhere. When COBRA runs out naturally, that does.
Does COBRA cover dental and vision?
Only if you were enrolled in those plans through your employer and the employer continues to offer them. Dental and vision are usually separate elections, and you can often choose to continue some and not others.
Can I get COBRA if I quit rather than being laid off?
Yes. COBRA applies whether the separation was voluntary or involuntary — the only exclusion is termination for gross misconduct. Resigning does not cost you your marketplace options either: losing the employer plan is the qualifying event, and the marketplace does not ask why the job ended. What does close the door is voluntarily dropping coverage you could have kept.
How do I find help with COBRA near me?
You do not need someone local. COBRA is federal law and works the same in every state, and the alternatives available to you are priced by county, which a licensed agent can look up wherever they are. Calling (866) 821-1808 connects you with a licensed agency that can compare your options with you.
Talk it through with a licensed agent
Which option is right depends on your state, your income and which doctors you need to keep. A licensed agent can walk through it with you in about eight minutes.
Free to call, no obligation, and we never ask you for payment. CobraScout is paid by the agency that answers, not by you. TTY 711.
Sources
- U.S. Department of Labor, FAQs on COBRA Continuation Health Coverage for Workers
- HealthCare.gov, COBRA coverage and the Marketplace
- KFF, 2025 Employer Health Benefits Survey
- 26 U.S.C. § 4980B and ERISA §§ 601–608 (COBRA statutory framework)