COBRA (Consolidated Omnibus Budget Reconciliation Act) is a federal law that gives you the right to continue your employer-sponsored health insurance for a limited time after losing coverage due to a qualifying event — such as leaving a job, being laid off, having your hours reduced, or losing coverage as a dependent.
COBRA coverage is identical to your prior employer plan — same network, same benefits, same cost-sharing. The catch: you pay the full premium yourself, including the portion your employer previously covered. This often makes COBRA significantly more expensive than alternatives.
COBRA continuation periods by event type:
You have 60 days from receiving the COBRA election notice to enroll, and coverage is retroactive to the date you lost original coverage. This means you can wait and see if you need care before committing — but you’ll owe back premiums if you do enroll retroactively.
For most people, an ACA Marketplace plan will cost significantly less — especially if you qualify for a Premium Tax Credit. COBRA is worth considering if you’re mid-treatment with specific providers who are not in any Marketplace network, or if you expect to return to employer coverage within a few months. Otherwise, the Marketplace almost always offers better value. Losing your job is a qualifying life event that opens a 60-day SEP.
Yes. You have 60 days from the COBRA election notice to decide. If you enroll, your coverage is retroactive to the day you lost your original coverage, so there’s no gap. This lets you evaluate your situation before committing to premiums. If you don’t need care in that 60-day window, you could choose a Marketplace plan instead — but note that the SEP window for the Marketplace also runs from the date of coverage loss, not the COBRA election notice.
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