COBRA is a federal law that lets you, your spouse and your dependents stay on your employer’s health plan after you leave a job, have your hours cut, or experience certain other life events. You keep the same doctors, deductible progress and benefits, 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% administrative fee.
That often means a big jump. In 2026 the average employer plan costs $9,804 a year for single coverage and $28,303 for family coverage, according to KFF’s annual employer survey, so COBRA can run roughly $830 a month for one person and around $2,400 for a family. This guide explains who qualifies, the deadlines that matter, and how to decide between COBRA and a Marketplace plan, a spouse’s plan or Medicaid.
Who qualifies for COBRA
Federal COBRA applies to group health plans at private employers with 20 or more employees, and to state and local government plans. Many states have their own “mini-COBRA” laws that cover smaller employers. You qualify if you were on the plan the day before one of these qualifying events:
- You lost your job for any reason other than gross misconduct, including layoffs and quitting.
- Your hours were reduced enough to lose eligibility.
- For a spouse or dependent: the covered employee died, divorced or legally separated from the spouse, or became entitled to Medicare.
- A dependent child aged out of the plan, usually at 26.
COBRA usually covers the same medical plan you had, and in many cases dental and vision too. Each covered family member has an independent right to elect, so a spouse can choose COBRA even if the employee does not.
How long COBRA lasts
- 18 months after job loss or reduced hours.
- 29 months if someone in the family is determined disabled by Social Security within the first 60 days of COBRA and you notify the plan in time. The premium can rise to 150% for months 19 through 29.
- 36 months for spouses and dependents after the employee’s death, a divorce, the employee’s Medicare entitlement, or a child aging out.
Coverage can end early if you stop paying, if the employer ends all its health plans, or if you get coverage under another group plan.
COBRA deadlines
COBRA has a strict timeline, and missing a date can mean losing the right entirely.
- Your employer has 30 days after the qualifying event to notify the plan administrator. For divorce, separation or a child aging out, you must notify the plan within 60 days.
- The plan administrator then has 14 days to send you an election notice. In practice, it often arrives two to six weeks after your last day.
- You have 60 days to elect COBRA, counted from the later of the date coverage ended or the date the notice was sent.
- After electing, you have 45 days to make the first premium payment, which covers all months back to the date your old coverage ended.
- Later monthly payments have a 30-day grace period. A late payment past the grace period ends coverage, usually for good.
Because coverage is retroactive once you elect and pay, some people wait to see whether they need care during the election window. That is legal, but risky if you cannot afford a large bill all at once, and doctors may hold claims or show you as uninsured until COBRA is reinstated.
COBRA vs. other options
Losing job-based coverage triggers a 60-day special enrollment period for Marketplace plans and lets you join a spouse’s employer plan, usually within 30 days. Compare the options side by side:
| Option | Typical monthly cost | Keeps your doctors and deductible progress | Main catch |
|---|---|---|---|
| COBRA | Full premium plus 2% (about $830 single, $2,400 family on average) | Yes | Expensive; no subsidies |
| Marketplace (HealthCare.gov or state) | Varies with income; premium tax credits if income is 100% to 400% of the poverty level | Not necessarily; deductible starts over | New network and plan rules |
| Spouse’s or partner’s employer plan | Employee share of premium, often much lower | Depends on the plan | Must enroll within the plan’s special enrollment window |
| Medicaid or CHIP | Free or very low | Depends on providers who accept Medicaid | Income limits; based on current monthly income |
| Medicare (if 65+) | Part B standard premium plus any Part D or supplement | Depends on doctors | COBRA does not protect you from Part B late penalties |
For a Marketplace plan, you can apply up to 60 days before your job coverage ends, so there is no gap, or up to 60 days after. Without the enhanced subsidies that expired at the end of 2025, people earning more than 400% of the poverty level do not qualify for premium tax credits in 2026 or 2027, which makes COBRA more competitive for higher earners.
When COBRA makes sense
- You have already met most or all of this year’s deductible or out-of-pocket maximum, and it is early in the plan year.
- You are in the middle of treatment, pregnancy or surgery planning and need to keep specific doctors.
- You expect a new job with benefits within a few months.
- Your former employer pays some or all of the COBRA premium as part of a severance package.
- Your income is too high for Marketplace subsidies and comparable Marketplace plans cost about as much.
Example: Danielle leaves her job in August. She had knee surgery in April and has already hit her $4,000 out-of-pocket maximum for the year. COBRA single coverage costs $780 a month. Through December, any covered in-network care costs her nothing more, and she keeps her surgeon and physical therapist. A new Marketplace plan would restart her deductible. She elects COBRA for the rest of the year and shops on HealthCare.gov during open enrollment for January.
Example: Marcus, 41, is laid off in February. His family’s COBRA quote is $2,350 a month. His household income for the year will drop to about $60,000 for a family of four, around 187% of the poverty level. On the Marketplace, he qualifies for premium tax credits and a silver plan with cost-sharing reductions, and his family’s net premium is a few hundred dollars a month. The family’s pediatrician is in network on two of the plans. He chooses the Marketplace and saves roughly $20,000 over the rest of the year.
Mistakes to avoid
- Dropping COBRA in the middle of the year to switch to a cheaper Marketplace plan. Voluntarily ending COBRA outside open enrollment does not open a special enrollment period. Exhausting all 18 months does.
- Missing the first payment. The 45-day deadline is firm, and the first bill can cover several months.
- Assuming COBRA counts as job-based coverage for Medicare. If you are 65 or older, you generally need to sign up for Medicare Part B when your employment ends, not when COBRA ends, to avoid a lifetime late penalty and gaps.
- Ignoring the election notice. If it does not arrive within about six weeks, call the plan administrator or HR.
- Forgetting your HSA. If you have one, HSA funds can be used tax free to pay COBRA premiums.
Common questions
How much does COBRA cost per month?
It is the full plan premium plus up to 2%. Based on KFF’s 2026 averages, that is about $830 a month for single coverage and about $2,400 for family coverage, but your former employer’s plan may cost more or less. The election notice lists your exact price.
Can I get COBRA if I quit my job?
Yes. Quitting is a qualifying event, as long as your employer is covered by COBRA and you were on the plan. Only termination for gross misconduct disqualifies you.
Is COBRA coverage retroactive?
Yes. If you elect within 60 days and pay within 45 days of electing, coverage applies back to the day your old coverage ended, with no gap. Claims during that window are processed once you are reinstated.
Can I switch from COBRA to a Marketplace plan?
You can switch during the annual open enrollment period, which runs November 1 to December 15, 2026, on HealthCare.gov, or when your COBRA runs out. Dropping COBRA voluntarily at other times does not qualify you for a special enrollment period.
Does COBRA include dental and vision?
If you had dental or vision through your employer’s group plan, you can usually continue them under COBRA, often as separate elections with separate premiums. Some people keep only the medical portion to lower costs.
Before you decide
- Note your last day of coverage and mark the 60-day election deadline.
- Get your COBRA premium from HR or the election notice.
- Check how much of this year’s deductible and out-of-pocket maximum you have met.
- Get Marketplace quotes with an honest income estimate for the year.
- Check whether a spouse’s plan is available and its enrollment deadline.
- If you are 65 or older, contact Social Security about Medicare enrollment right away.
Editorial note: This article is general information, not legal or insurance advice. Rules and figures were checked as of November 2026; confirm your rights and deadlines with your plan administrator, the U.S. Department of Labor’s Employee Benefits Security Administration, and HealthCare.gov.