You may find cheaper options through the Marketplace, a spouse’s plan, or Medicaid. These alternatives can offer strong coverage—especially if you qualify for financial assistance.
COBRA
COBRA gives employees and their families who lose health benefits the right to choose to continue group health benefits under certain circumstances. COBRA applies to groups with 20 or more employees in the preceding calendar year, but counting employees can be tricky since part-timers count as a fraction of a full-time employee. COBRA has a number of notice requirements along with fines for non-compliance, so some small employers choose to outsource their COBRA administration responsibilities to a Third-Party Administrator (TPA).
Can someone elect COBRA for just one family member?
Yes. Each covered family member can choose COBRA independently, allowing one person to keep coverage while others decline—giving families flexibility based on needs and cost.
What benefits do I get under COBRA?
COBRA coverage matches the group plan exactly—same doctors, benefits, and rules. It’s a continuation of coverage, not a limited or separate version of the plan.
Can COBRA coverage be dropped early?
Yes. COBRA can end before the full coverage period if the beneficiary misses a payment, gets other group coverage, becomes eligible for Medicare, or if the employer ends the plan.
What happens if a COBRA payment is late?
COBRA includes a 30-day grace period for late payments. If payment isn’t received by the deadline, coverage can be terminated and doesn’t have to be reinstated.
Who is responsible for sending COBRA notices?
Employers must report qualifying events, and plan administrators must send timely COBRA notices. If the employer handles both roles, they have 44 days to notify affected employees and dependents.
How much does COBRA coverage cost?
COBRA costs the full premium—employee plus employer share—plus a 2% fee. It feels expensive because you’re no longer getting help from your employer to pay for coverage.
How long does COBRA coverage last?
COBRA usually lasts 18 months for job loss or reduced hours, and 36 months for divorce, death, or a dependent aging out. Some situations allow for extensions.
What events trigger COBRA eligibility?
COBRA is triggered by events like job loss, reduced hours, divorce, death of the employee, or a child aging out—if they result in loss of group health coverage.
What is COBRA coverage and who qualifies for it?
COBRA allows eligible employees and dependents to continue their group health coverage after losing it due to job loss, reduced hours, or other qualifying events—if the employer is subject to COBRA.
Are HRAs a COBRA-eligible benefit?
Yes, most HRAs are subject to COBRA. Employees can continue coverage by paying a monthly premium, typically based on the HRA value plus a 2% admin fee.