Health Plans
What is COBRA?
Definition
COBRA is a federal law that lets qualified employees and family members keep their employer group health plan for up to 18 months (36 in some cases) after job loss, reduced hours or other qualifying events. Members pay the full premium plus a 2% administrative surcharge.
Real-World Example
A laid-off manager elects COBRA at $748 a month — the full premium plus the 2% fee — to keep her oncologist mid-treatment. She has 60 days from the qualifying event to enroll.
Why It Matters
COBRA is expensive but often the only bridge that keeps a family's providers, deductible progress and pharmacy coverage intact while shopping for marketplace or spouse coverage.
Frequently Asked Questions
Is COBRA cheaper than the marketplace?
Rarely. Marketplace subsidies frequently cut the net premium below COBRA — always price both before choosing.