COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. It’s a federal law that lets you keep your employer-sponsored health insurance for a limited time after your job ends or your hours are reduced.
How COBRA works
COBRA allows you to stay on the same plan you had through your employer.
You must pay the full cost of the premium yourself - this includes both your share and the portion your employer used to pay, plus a small administrative fee.
COBRA coverage usually lasts up to 18 months, but can be longer in some cases (such as disability or special family circumstances).
How long COBRA lasts
COBRA coverage usually lasts up to 18 months. In some cases, it can be extended to 29 months if you qualify for disability, or up to 36 months for certain family events such as divorce, death of the covered employee, or a dependent aging out of coverage. Your plan administrator will notify you if any of these extensions apply.
COBRA vs. Marketplace coverage
You can choose either COBRA or a Marketplace plan - but not both at the same time.
Marketplace plans may offer lower costs if you qualify for premium tax credits or other savings.
Once you sign up for COBRA, you generally can’t switch to a Marketplace plan until the next Open Enrollment Period or when COBRA ends.
Need help comparing options?
If you recently lost coverage and aren’t sure whether COBRA or Marketplace coverage is best for you, contact our Consumer Advocate team for help. Call 855-772-2663, Monday–Friday, 6 a.m.–4 p.m. PT.