Quick answer
COBRA lets you keep the health plan you had through a job after you leave it or lose eligibility, usually for up to 18 months. The catch is cost: you pay the full premium, including the share your employer used to cover, plus up to a 2% fee. For an average family plan, that’s about $2,300 a month. A marketplace plan with a premium tax credit often costs much less.
Key takeaways
- COBRA applies to employers with 20 or more employees. Many states have “mini-COBRA” laws for smaller employers.
- You have 60 days to elect COBRA, and coverage is retroactive to the day your old coverage ended.
- It usually lasts 18 months, and up to 36 months for family members after events like divorce or the worker’s death. See health insurance after a divorce.
- Losing job-based coverage also lets you pick a marketplace plan within 60 days, and you can’t get a premium tax credit while you’re on COBRA.
- If you choose COBRA and later drop it, you usually can’t switch to a marketplace plan until open enrollment.
On this page
How COBRA works
COBRA, named for the 1985 law that created it, isn’t a separate insurance plan. It’s the right to stay on your employer’s group plan with the same doctors, deductible and benefits after a qualifying event, such as:
- Leaving a job, quitting or being fired, except for gross misconduct
- Having your hours cut below the plan’s eligibility level
- For a spouse or children: divorce, legal separation, the worker’s death or the worker going on Medicare
- For children: aging out of the plan at 26
Your employer or plan administrator must send you an election notice. You then have 60 days to decide, and 45 more days after electing to make your first payment. Coverage is retroactive, so if you get sick during the decision window, you can still elect COBRA and be covered.
How long it lasts
| Event | Maximum COBRA coverage |
|---|---|
| Job loss or reduced hours | 18 months |
| Disabled (as determined by Social Security) within 60 days of COBRA starting | 29 months |
| Divorce, legal separation, the worker’s death, or the worker going on Medicare (for spouse and children) | 36 months |
| A child losing dependent status | 36 months |
What it costs
You pay up to 102% of the plan’s full cost. Using KFF’s 2025 averages, that works out to about $793 a month for single coverage and about $2,300 a month for family coverage. That’s the part that surprises people: while you were working, your employer paid most of it. See is it cheaper to get health insurance through your employer.
If you have an HSA, you can use it to pay COBRA premiums tax-free.
COBRA vs. a marketplace plan
Losing job-based coverage gives you a 60-day special enrollment period for the marketplace, and you can use it even if you’ve been offered COBRA. The marketplace can be cheaper because of the premium tax credit, which is based on your expected income for the year. After a layoff, that income may be lower than you think. See how health insurance subsidies work.
| COBRA | Marketplace plan | |
|---|---|---|
| Premium | Full cost plus up to 2% | Reduced by a tax credit if you qualify |
| Doctors and deductible | Same as before | New network; deductible starts over |
| How long | Usually 18 months | As long as you keep paying |
| Help paying | None | Premium tax credit and cost-sharing reductions |
COBRA can still make sense when:
- You’ve already met most of this year’s deductible or out-of-pocket maximum
- You’re in the middle of treatment and need to keep the same doctors
- You expect new job-based coverage soon
One timing rule matters. If you elect COBRA and then drop it before it runs out, that doesn’t open a special enrollment period, so you’d wait for open enrollment to switch. If you’re torn, compare prices during your 60 days, since COBRA is retroactive.
Other options
- A spouse’s job-based plan, which usually lets you join within 30 days of losing your coverage. See family health insurance.
- Medicaid, if your income has dropped.
- A parent’s plan if you’re under 26.
More in health insurance for the unemployed.
Related guides: working past 65 and Medicare, what to do if you missed open enrollment and Medicare late enrollment penalties.
Compare COBRA’s price with plans you can buy yourself: see quotes by ZIP code.
Frequently asked questions
Can I get COBRA if I quit my job?
Yes. Quitting, being laid off or being fired all qualify, unless you’re fired for gross misconduct.
Can I get a premium tax credit while on COBRA?
No, not for months you’re enrolled in COBRA. Being offered COBRA doesn’t block the credit if you turn it down and buy a marketplace plan instead.
What happens when COBRA runs out?
Losing COBRA at the end of its full term is a qualifying event, so you get 60 days to buy a marketplace plan.
Does COBRA cover my family?
Yes. Spouses and dependent children who were on the plan can elect COBRA, even separately from the worker.
Sources
This article is general information, not legal or insurance advice. COBRA rules have exceptions, so read your election notice carefully and contact your plan administrator or the Department of Labor with questions. Last reviewed September 2026.