- You generally have 60 days to elect COBRA, and coverage can be retroactive to the day your employer plan ended if you elect and pay on time.
- COBRA premiums can be up to 102% of the full plan cost, because your employer usually stops contributing.
- Losing employer coverage typically opens a 60-day special enrollment period for marketplace plans.
- COBRA can still be the better choice if you're mid-treatment, have met your deductible, or want to keep the exact same doctors.
What COBRA is
COBRA is a federal law that lets you and your covered family members keep your employer's group health plan after leaving a job, having your hours reduced, or certain other events. It generally applies to employers with 20 or more employees and usually lasts up to 18 months, longer in some situations such as divorce or a dependent aging off the plan.
Smaller Florida employers with fewer than 20 employees may be covered by Florida's state continuation law, often called "mini-COBRA," which has its own notice deadlines and pricing rules. We'll help you confirm which applies to you.
COBRA vs. your other options
| COBRA | Individual or marketplace plan | Private PPO plan | |
|---|---|---|---|
| Monthly cost | Up to 102% of the full plan premium | Based on age and ZIP; tax credits may apply | Based on age, ZIP and health history |
| Doctors and network | Same plan and network you have now | New plan; networks vary | New plan; PPO network |
| Deductible progress | Kept for the current plan year | Starts over | Starts over |
| Pre-existing conditions | Covered | Covered on ACA plans | May be limited |
| How long | Usually up to 18 months | Ongoing | Ongoing, per plan terms |
Deadlines that matter
- COBRA election: you generally have at least 60 days from the later of losing coverage or receiving your election notice. If you elect and pay within the deadlines, coverage is retroactive, so there's no gap.
- Marketplace special enrollment: losing employer coverage typically gives you 60 days to enroll in a marketplace plan. Choosing COBRA and then dropping it voluntarily later in the year usually does not open a new special enrollment period, so compare before you decide.
- Private plans: many accept applications year-round, subject to underwriting and the carrier's start dates.
When COBRA often makes sense
- You or a family member is in the middle of treatment, pregnancy or a planned surgery.
- You've already met most of this year's deductible or out-of-pocket maximum.
- You'll start a new job with benefits soon and only need a short bridge.
- Your former employer is subsidizing COBRA as part of a severance package.
When an alternative often costs less
- You're healthy and may qualify for a lower-cost private PPO plan.
- Your income this year qualifies you for marketplace tax credits.
- You need coverage for longer than COBRA lasts, such as an early retiree bridging to Medicare.
How we help
- Send us your COBRA election notice or the monthly COBRA cost.
- We check your doctors and prescriptions against alternative plans.
- We compare the full cost for the rest of the year, including your deductible progress.
- You decide before your election deadline, and we handle any new application.
See also individual health insurance, private PPO plans and ACA marketplace plans.
General information only, not tax, legal or medical advice. Plan availability, benefits, networks and pricing vary by carrier, state, county and eligibility. COBRA information is general; see the U.S. Department of Labor for full rules.