Health Insurance
What is COBRA insurance and when should I use it?
COBRA (Consolidated Omnibus Budget Reconciliation Act) allows you to continue your employer's group health insurance for up to 18 months after leaving a job (or 36 months for dependents in certain situations). The catch: you pay the full premium — both your share and your employer's share — plus a 2% administrative fee. COBRA is expensive (often $600–$1,800/month for a family) but provides continuity of coverage. It's most valuable when you have ongoing treatment or are in the middle of a plan year. Compare COBRA to ACA marketplace plans — you may qualify for a subsidy that makes ACA significantly cheaper.
Key Points
- COBRA allows continuing employer's group health insurance after leaving a job
- Coverage period: up to 18 months (36 months for dependents in some situations)
- You pay the full premium — both employee and employer share — plus 2% admin fee
- COBRA is expensive: often $600–$1,800/month for a family
- Most valuable when you have ongoing treatment or are mid-plan-year
- Compare COBRA to ACA marketplace plans — you may qualify for subsidies that make ACA cheaper