COBRA Health Insurance
How COBRA works after you lose job-based coverage, what it costs, how long it lasts, how it compares with the marketplace, and a calculator.
COBRA health insurance cost calculator
How COBRA health insurance works
COBRA lets you and your family keep your employer's group health plan for a while after you lose coverage, such as after a job loss, reduced hours, divorce or a death. It applies to employers with 20 or more employees (DOL); many states have similar "mini-COBRA" laws for smaller employers.
Cost and length
- You can be charged up to 102% of the plan's full cost: your old share plus what your employer paid, plus 2%. That's why COBRA often costs several times your old paycheck deduction.
- Coverage usually lasts 18 months; certain events extend it to 36 months, and a Social Security disability can extend it to 29 months, at up to 150% after month 18.
- You generally have 60 days to elect COBRA, and coverage is retroactive once you pay, so you can wait to see whether you need it.
COBRA vs the marketplace
Losing job coverage also opens a special enrollment period on HealthCare.gov or your state marketplace, where income-based premium credits may make a plan cheaper (see 1095-A). Near 65? COBRA doesn't protect you from Medicare penalties: see Medicare enrollment.
Common questions
How much does COBRA cost?
Up to 102% of the plan's full cost, including what your employer used to pay.
How long does COBRA last?
Usually 18 months; up to 36 months for certain events.
Which employers have to offer COBRA?
Employers with 20 or more employees; many states cover smaller ones.
Sources
More paycheck and tax calculators: Blank W9 Form · Child Tax Credit · Covered California · Distributable Net Income (DNI)
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.