COBRA insurance: how it works, how long it lasts and what it costs

What COBRA is and who can get it

COBRA (the Consolidated Omnibus Budget Reconciliation Act) is a federal law that makes an employer's group health plan offer you the same coverage for a limited time after an event that would otherwise end it. It is not a new policy: you stay on the plan, with the same benefits as the employees who still work there, and if the plan changes for them it changes for you. What changes is who pays. 29 U.S.C. §§ 1161, 1162(1)

• Employers with 20 or more employees. Federal COBRA covers group health plans of private employers and state and local governments that had at least 20 employees on more than 50 percent of their typical business days in the previous calendar year. Part-time workers count as a fraction: if full time is 40 hours a week, a 20-hour worker counts as half an employee. Federal government plans and church plans are not under COBRA. Smaller employers are not covered by federal COBRA, but many states require continuation for insured plans: see state continuation laws.29 U.S.C. § 1161(b) · 26 C.F.R. § 54.4980B-2 · DOL: Employee's Guide · CDI
• The qualifying events. For the employee: losing the job for any reason other than gross misconduct, or a cut in hours that ends coverage. For a spouse and children: those two, plus the employee's death, a divorce or legal separation, or the employee becoming entitled to Medicare. For a child: also losing dependent status under the plan, usually at age 26. An event counts only if it actually ends someone's coverage.29 U.S.C. § 1163 · DOL: Employee's Guide
• Quitting counts. Apart from gross misconduct, the facts behind the job ending are irrelevant: it does not matter whether you quit or were fired. A strike, a lockout or a layoff that ends your coverage counts too. If you were pushed out, see wrongful termination.26 C.F.R. § 54.4980B-4, Q&A-2
• Each family member decides separately. Your spouse and children who were on the plan the day before the event each have their own right to elect, even if you do not. One person's election covers the others unless it says otherwise, and a baby born or adopted during COBRA is added as a qualified beneficiary.29 U.S.C. §§ 1165(a)(2), 1167(3)
• FMLA leave is not a qualifying event. During FMLA leave your employer must keep your health coverage on the same terms. COBRA starts only when that duty ends, for example when you tell your employer you will not come back.DOL: Employee's Guide

How long COBRA lasts: 18, 29 or 36 months

The maximum depends on the event and on who is continuing coverage. It runs from the qualifying event, or from the day coverage is lost if the plan counts it that way. 29 U.S.C. § 1162(2)(A) · 26 C.F.R. § 54.4980B-7

• The disability extension: 11 more months, 29 in all. If Social Security finds that anyone in the family was disabled at any time during the first 60 days of COBRA, everyone in the family gets 11 more months after a job loss or cut in hours. Send the decision to the plan within 60 days of it and before the 18 months run out. The plan can charge up to 150% of the cost for months 19 to 29. If Social Security later finds the person is no longer disabled, tell the plan within 30 days. If you are fighting a denial, see disability appeal.29 U.S.C. §§ 1162(2)(A)(viii), 1166(a)(3) · 26 C.F.R. § 54.4980B-8
• A second event: up to 36 months for the family. If a divorce, the employee's death, Medicare entitlement or a child's loss of dependent status happens during the 18 months, and it would have ended the spouse's or child's coverage anyway, they can get up to 36 months in total, counted from the first event. Tell the plan within 60 days.29 U.S.C. § 1162(2)(A)(ii) · DOL: Employee's Guide
• Medicare before the job ended. If the employee became entitled to Medicare less than 18 months before the job ended, the spouse and children can keep COBRA until 36 months after the Medicare date.29 U.S.C. § 1162(2)(A)(vii)
• COBRA can end early. When a premium is not paid on time, when the employer stops offering any group health plan, or when you become covered by another group plan or entitled to Medicare after you elect. Fraud can end it too.29 U.S.C. § 1162(2) · DOL: COBRA FAQs

How much COBRA costs: up to 102% of the full premium

As an employee you paid only your share and your employer paid the rest. On COBRA you pay both shares plus up to 2% for administration: 102% of the plan's full cost for similarly situated employees. HealthCare.gov puts it as paying 100% of the premiums, including the part your employer used to pay, plus a small administrative fee. The plan must let you pay monthly. 29 U.S.C. §§ 1162(3), 1164 · DOL: Employee's Guide

Full monthly cost of the plan

$700Your share plus your employer's. It is on your election notice.

COBRA premium at 102%

$714 a month$700 × 1.02

Months 19 to 29 with the disability extension, at 150%

$1,050 a month$700 × 1.5

Total if the family keeps COBRA all 29 months

$24,40218 × $714 = $12,852, plus 11 × $1,050 = $11,550

What COBRA costs at average prices. The federal Agency for Healthcare Research and Quality surveys private employers every year. In 2024 the average full premium was $8,486 for single coverage, $16,931 for employee-plus-one and $24,540 for a family; the average worker paid $1,789, $4,707 and $7,216 of it. On COBRA you pay the full premium plus 2%: AHRQ, MEPS Insurance Component, Research Findings #54 (December 2025)

For single coverage, COBRA at the average price is about 4.8 times what the average worker paid. Your own figure is on your election notice; plans may raise the COBRA premium if their cost rises, but must generally fix it before each 12-month premium cycle. 29 U.S.C. § 1164(3) · DOL: Employee's Guide

• Your employer may pay some or all of it. Employers do not have to pay any of the COBRA premium, but some pay part or all of it as part of a severance package. Get it in writing: how many months, and what happens if you find a new job. See severance pay.DOL: COBRA FAQs · DOL: Employee's Guide
• A small shortfall is not a missed payment. If you pay on time but the amount is short by no more than $50 or 10% of the amount due, whichever is less, the plan must tell you and give you a reasonable time to pay the difference; 30 days counts as reasonable.26 C.F.R. § 54.4980B-8, Q&A-5
• The old tax credit is gone. The Health Coverage Tax Credit expired on December 31, 2022. A Marketplace plan can come with savings based on your household income; COBRA does not.DOL: Employee's Guide · HealthCare.gov

COBRA deadlines: the notices, 60 days to elect, 45 days to pay

COBRA runs on a chain of dates. Miss the election or the first payment and the right is gone. The calculator at the top counts each date from yours.

1. Within 30 days of the event

   The employer tells the plan administrator about a job loss, cut in hours, death or Medicare entitlement. 29 U.S.C. § 1166(a)(2) · 29 C.F.R. § 2590.606-2

2. Within 60 days, for a divorce or a child aging out

   You must tell the plan yourself, in the way its summary plan description sets out. If you are filing for divorce, put this date in your calendar. 29 U.S.C. § 1166(a)(3)

3. Within 14 days after the administrator is told

   The administrator sends you the election notice. When the employer is also the administrator, it has 44 days from the event (or from the loss of coverage, if the plan counts from that). 29 U.S.C. § 1166(c) · 29 C.F.R. § 2590.606-4(b)

4. At least 60 days to elect

   Counted from the later of the day coverage ends or the day the election notice is provided. 29 U.S.C. § 1165(a)(1) · 26 C.F.R. § 54.4980B-6

5. 45 days after electing: the first premium

   The plan cannot ask for payment with the election. Because coverage goes back to the day it ended, the first payment can cover two months or more. 29 U.S.C. § 1162(3) · NJ DOBI

6. Every month after: a 30-day grace period

   Each later payment is on time if made within 30 days after its due date, or a longer period the plan allows. 29 U.S.C. § 1162(2)(C)

Worked example: federal COBRA after a layoff. The dates below follow the same rules the calculator at the top uses.

Coverage ends

October 31, 2026

Election notice arrives

November 14, 2026

Marketplace special enrollment closes

December 30, 202660 days after the coverage ends: two weeks before the COBRA deadline

Last day to elect COBRA

January 13, 202760 days after the notice, the later date

First premium due, if you elect that day

February 27, 202745 days after the election; at $714 a month it covers the months since coverage ended

COBRA ends at the latest

18 months after October 31, 2026around the end of April 2028; 29 months, around the end of March 2029, with a disability extension

State continuation laws (mini-COBRA) for smaller employers, state by state

If your employer had fewer than 20 employees, federal COBRA does not apply, but many states require insured group plans to offer continuation coverage. A few states also add months after federal COBRA runs out. A self-funded plan follows federal law only. Each row below was read on October 21, 2026 from the state's statute or insurance department; the calculator at the top uses the same figures.

• California: Cal-COBRA, and 36 months after federal COBRA. Cal-COBRA covers insured plans of employers with 2 to 19 employees, for a full 36 months for anyone who became eligible after January 1, 2003. If you had federal COBRA from a larger employer, California Insurance Code section 10128.59 extends it under Cal-COBRA after your 18 months, to a total of no more than 36 months, when the group policy was issued in California. The Legislature's 2010 analysis puts the Cal-COBRA cap at 110% of the full premium.CDI: Frequently asked questions · CDI: Continuation coverage · Senate floor analysis of SB 838
• New York: 36 months, and an extension after federal COBRA. The Department of Financial Services says small employers (fewer than 20 employees) must provide the equivalent of COBRA, for 36 months, at up to 102% of the group rate; you request it in writing within 60 days following the later of the termination or the notice. Insurance Law section 3221(m) also requires insured group policies to let a person who used up federal COBRA continue for up to 36 months from the day continuation began.NY DFS: COBRA FAQ · N.Y. Ins. Law § 3221(m)
• Texas: 9 months, 6 more after COBRA, 3 years for a family member. If you are not eligible for COBRA, Texas state continuation lasts 9 months; if you had COBRA, it adds 6 months after COBRA ends, for 24 months in all for the employee and 42 months for a spouse or child. You must have been covered for the 3 months before, and you usually can't get it if you were fired for cause. You ask in writing within 60 days from the later of the day coverage ends or the notice (§ 1251.253), and pay within 45 days after electing, with 30 days for each later payment (§ 1251.254). Separately, a spouse or child who loses coverage through a divorce, or the member's retirement or death, can continue until the third anniversary of that event; they must say so in writing within 60 days. The statute counts the 9 months from the day you elect.TDI: Health care coverage guide · Tex. Ins. Code §§ 1251.252–1251.255, 1251.308, 1251.310
• Florida: you notify the insurer first. For employers with fewer than 20 employees, you (not the employer) must give the insurance carrier written notice within 63 days after the qualifying event. The carrier then has 14 days to send the election and premium form by certified mail, and you have 30 days after receiving it to elect and pay the first premium. Coverage lasts 18 months, or 29 months if Social Security finds you were disabled at the time of the event. The premium may be up to 115%, and up to 150% during the 11-month disability extension. Later premiums have a 30-day grace period.Fla. Stat. § 627.6692(5)
• Connecticut: 30 months for every employer size. Since May 5, 2010, every fully insured Connecticut group plan, large or small, must offer 30 months after a layoff, cut in hours, leave of absence or termination of employment. The 30 months already exceed the 29-month disability extension, so there is no extra time and no 150% premium for disability. A second event can bring the spouse and children to 36 months in total.Conn. Gen. Stat. § 38a-512a · CID: Continuation expanded to 30 months
• Pennsylvania: 9 months, 30 days to decide. Pennsylvania's Mini-COBRA covers employers with 2 to 19 employees for 9 months, with no extensions, at up to 105% of the group rate (up to 100% of the premium plus 5% for administration). You have 30 days to elect, and you must have been covered for the 3 months before.PID: COBRA and Mini-COBRA · PID model election notice

COBRA or a Marketplace plan: how to choose

You don't have to take COBRA. HealthCare.gov says to compare the cost of COBRA with Marketplace plans before you decide. Losing job-based coverage opens a special enrollment period: you can pick a Marketplace plan in the 60 days before and the 60 days after the coverage ends. Medicaid and CHIP have no window; you can apply any time. Savings on a Marketplace plan depend on your household size and income for the year, not on whether you have a job, and being offered COBRA does not make you ineligible. HealthCare.gov · 45 C.F.R. § 155.420(c) · DOL: Employee's Guide

What to do next

1. 1Write down the dates. The day coverage ends, the day the election notice arrived and the date of the event. Put the election deadline and the Marketplace deadline in your calendar; the calculator at the top makes a calendar file. File for unemployment benefits the same week, and if the claim is denied, see unemployment appeal.
2. 2Ask HR or the plan administrator for the numbers in writing. The full monthly premium for each option, the monthly due date, whether federal COBRA or a state law applies, and how long your coverage can last. If you were laid off, ask about your final paycheck and any severance at the same time.
3. 3Compare before the earlier deadline. Get Marketplace prices at HealthCare.gov (1-800-318-2596) before its 60-day window closes, which can come before your COBRA deadline.
4. 4Elect in writing and keep proof. Use the election form, send it in a way that gives you a dated receipt, and keep a copy. Each family member can elect.
5. 5Pay the first premium within 45 days, then every month. Put each due date and its 30-day grace period in your calendar. A payment after the grace period can end COBRA for good.
6. 6No notice? Ask, then call the Department of Labor. If 44 days pass after a job loss with no election notice, ask HR in writing who the administrator is and when it was told. For private-sector plans, the Employee Benefits Security Administration answers at 1-866-444-3272. For a state continuation law, contact your state insurance department. If the plan still refuses, a lawyer or legal aid can help.

Getting help

The Department of Labor's Employee Benefits Security Administration answers COBRA questions about private-sector plans at 1-866-444-3272, and HealthCare.gov's line is 1-800-318-2596. State continuation laws are enforced by the state insurance department. More programs are on the Government benefits hub.

Common questions

Official sources

1. 29 U.S.C. § 1161 (2024 edition): plans must offer continuation coverage; § 1161(b) exception when employers normally employed fewer than 20 employees govinfo.gov
2. 29 U.S.C. § 1162: identical coverage; 18, 29 and 36 months (§ 1162(2)(A)); 30-day grace (§ 1162(2)(C)); 102 percent, 150 percent and 45 days (§ 1162(3)) govinfo.gov
3. 29 U.S.C. § 1163: qualifying events (death, termination other than for gross misconduct or reduction of hours, divorce or legal separation, Medicare entitlement, dependent child status) govinfo.gov
4. 29 U.S.C. § 1164: applicable premium, whether paid by the employer or the employee; set for a period of 12 months govinfo.gov
5. 29 U.S.C. § 1165: election period of at least 60 days from the later of loss of coverage or the notice; one election covers the family govinfo.gov
6. 29 U.S.C. § 1166: employer notifies the administrator within 30 days; you notify within 60 days for divorce or a child; administrator notifies within 14 days govinfo.gov
7. 29 U.S.C. § 1167: qualified beneficiaries, including a child born or adopted during continuation coverage govinfo.gov
8. 26 C.F.R. § 54.4980B-2, Q&A-5: small-employer plan (fewer than 20 employees on at least 50 percent of typical business days); part-time employees counted as a fraction govinfo.gov
9. 26 C.F.R. § 54.4980B-4, Q&A-2: voluntary or involuntary termination does not matter, apart from gross misconduct govinfo.gov
10. 26 C.F.R. § 54.4980B-6: election period (60 days), coverage during the election period (Q&A-3), revoking a waiver (Q&A-4) govinfo.gov
11. 26 C.F.R. § 54.4980B-7: maximum coverage periods (18, 29 and 36 months), disability extension, second qualifying event govinfo.gov
12. 26 C.F.R. § 54.4980B-8: 102 percent and 150 percent; timely payment within 30 days; first payment no earlier than 45 days after the election; shortfall of $50 or 10 percent govinfo.gov
13. 29 C.F.R. § 2590.606-2: employer's notice of a qualifying event to the administrator within 30 days govinfo.gov
14. 29 C.F.R. § 2590.606-4(b): election notice within 14 days, or 44 days when the employer is also the administrator govinfo.gov
15. 45 C.F.R. § 155.420(c): Marketplace special enrollment, 60 days from the triggering event, and 60 days before a loss of coverage govinfo.gov
16. U.S. Department of Labor, EBSA: An Employee's Guide to Health Benefits Under COBRA (September 2022) dol.gov
17. U.S. Department of Labor, EBSA: FAQs on COBRA continuation health coverage for workers (employer may pay part or all as part of a severance package; early termination; Medicare) dol.gov
18. HealthCare.gov: COBRA coverage when you're unemployed (compare with the Marketplace; 60 days; switching from COBRA; Open Enrollment November 1 to January 15) healthcare.gov
19. HealthCare.gov: Special Enrollment Period (lost coverage in the past 60 days or expecting to lose it in the next 60 days; COBRA ending) healthcare.gov
20. HealthCare.gov: Health coverage options if you're unemployed (100% of the premiums plus a small administrative fee; savings based on household income) healthcare.gov
21. AHRQ, MEPS Insurance Component, Research Findings #54 (December 2025): 2024 average premiums $8,486 single, $16,931 employee-plus-one, $24,540 family; employee contributions $1,789, $4,707, $7,216 meps.ahrq.gov
22. California Department of Insurance: Frequently asked questions (Cal-COBRA: 2-19 employees, 36 months since January 1, 2003; Insurance Code section 10128.59 extension to 36 months) insurance.ca.gov
23. California Department of Insurance: Continuation coverage (usually 60 days after your employer notifies you; Cal-COBRA after COBRA) insurance.ca.gov
24. California Senate floor analysis of SB 838, May 26, 2010 (Cal-COBRA for firms of two to 19 employees, capped at 110 percent; up to 36 months) leginfo.ca.gov
25. New York Department of Financial Services: COBRA FAQ (small employers under 20 employees; 36 months; up to 102%; 60 days to request in writing) dfs.ny.gov
26. N.Y. Insurance Law § 3221(m): continuation for thirty-six months at no more than one hundred two percent; offer to people who exhausted federal continuation nysenate.gov
27. Texas Department of Insurance: Health care coverage guide (state continuation 9 months, or 6 months after COBRA; totals 24 and 42 months) tdi.texas.gov
28. Texas Insurance Code chapter 1251 (§§ 1251.252-1251.255 continuation: 60th day, 45th day, 30th day, two percent, nine and six months; §§ 1251.308, 1251.310 family members: 60th day, third anniversary) tcss.legis.texas.gov
29. Florida Statutes § 627.6692 (2026), Florida Health Insurance Coverage Continuation Act (fewer than 20 employees; 18 or 29 months; 63, 14 and 30 days; 115 percent; 150 percent) flsenate.gov
30. Connecticut General Statutes § 38a-512a (2025): thirty months after layoff, reduction of hours, leave or termination; one hundred two per cent cga.ct.gov
31. Connecticut Insurance Department: Continuation of group health coverage expanded to 30 months (Public Act 10-13, May 5, 2010; all fully insured plans; 102%) portal.ct.gov
32. Connecticut Insurance Department: model Connecticut Continuation Coverage Election Notice (60 days to elect, first payment 45 days after electing, 30-day grace period) portal.ct.gov
33. New Jersey Department of Banking and Insurance: COBRA and New Jersey Small Group Continuation (18, 29 and 36 months; 102%) nj.gov
34. New Jersey Small Employer Health Benefits Program Buyer's Guide (employers with one to 50 employees; 31-day grace period; initial payment of two months) nj.gov
35. Pennsylvania Insurance Department: COBRA and Mini-COBRA (2-19 employees; nine months; 30 days to elect; up to 5% administrative fee) pa.gov
36. Pennsylvania Insurance Department: model Mini-COBRA continuation coverage election notice (thirty (30) days; nine (9) months; 105% of the group rate) pa.gov
37. Minnesota Statutes § 62A.17 (2025): 18 months, 102 percent, notice within 14 days, 60 days to elect revisor.mn.gov
38. Minnesota Statutes § 62A.20: spouse and children after Medicare enrollment, child no longer dependent; 36 months; 102 percent revisor.mn.gov
39. Minnesota Statutes § 62A.21: former spouse and children after a dissolution of marriage, until other group coverage; 102 percent revisor.mn.gov
40. Minnesota Statutes § 62A.146: survivors, until the surviving spouse is covered under another group plan; 102 percent revisor.mn.gov
41. Code of Virginia § 38.2-3541: 12 months; 31 days after the notice, not beyond 60 days; two percent fee; notice within 14 days law.lis.virginia.gov
42. Maryland Insurance Article § 15-409: 18 months after a change in status; election period at least 45 days; employer and employee contributions plus a reasonable fee mgaleg.maryland.gov
43. Maryland Insurance Article § 15-407: survivors, 18 months after the death; election period at least 45 days mgaleg.maryland.gov
44. Maryland Insurance Article § 15-408: former spouse and children after a divorce, until other coverage or Medicare mgaleg.maryland.gov
45. Missouri Revised Statutes § 376.428 (effective June 26, 2009): continuation in the same manner as federal COBRA revisor.mo.gov
46. Kansas Statutes 40-2209(i): continuation for a period of 18 months; premium the same as for employees in the group ksrevisor.gov
47. Iowa Code 2026, chapter 509B (§ 509B.3: ten-day request, thirty-one days, nine months, the group rate; § 509B.5: notice within ten days) legis.iowa.gov

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