Short answer: COBRA coverage is identical to the employer’s group health plan—same benefits, providers, and rules—because it is a continuation of coverage, not a separate plan.
COBRA allows qualified beneficiaries to continue the same group health coverage they had immediately before the qualifying event. The benefits under COBRA are not reduced, modified, or limited compared to what active employees receive.
This means COBRA participants keep the same plan features, including the same network of doctors and hospitals, deductibles, copayments, coinsurance, and prescription drug benefits. Any medical, dental, vision, or other group health coverage in place before the qualifying event continues under COBRA.
If the employer changes its group health plan while an individual is enrolled in COBRA—such as switching carriers or modifying benefit levels—the COBRA participant must be offered the same plan options and benefit changes that apply to active employees.
The primary difference between COBRA coverage and active employee coverage is cost. In most cases, the individual pays the full premium for the coverage, plus up to a 2 percent administrative fee.
Sources
-
U.S. Department of Labor, FAQs on COBRA Continuation Health Coverage:
https://www.dol.gov/agencies/ebsa/laws-and-regulations/laws/cobra -
U.S. Department of Labor, An Employer’s Guide to Group Health Continuation Coverage Under COBRA:
https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/publications/an-employers-guide-to-group-health-continuation-coverage-under-cobra.pdf
Content history
Originally published: March 27, 2025
Last reviewed: January 24, 2026