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Who qualifies
Federal COBRA applies to group health plans of employers with 20 or more employees. Many states have “mini-COBRA” laws for smaller employers. You, your spouse and dependent children can elect COBRA after a qualifying event, such as:
- Losing your job (for any reason other than gross misconduct) or having hours cut
- Divorce or legal separation from the covered employee
- Death of the covered employee
- A dependent child aging out of the plan
- The covered employee becoming entitled to Medicare
How long it lasts
| Qualifying event | Maximum cover |
|---|---|
| Job loss or reduced hours | 18 months |
| Divorce, death of employee, dependent aging out, employee’s Medicare entitlement | 36 months for spouses and dependents |
| Disability (with Social Security determination) | Can extend 18 months to 29 |
Source: U.S. Department of Labor.
Deadlines
- You have at least 60 days to elect COBRA, counted from the later of losing cover or receiving the election notice.
- You then have 45 days after electing to pay the first premium, and cover is retroactive to the date you lost it.
- Later premiums usually have a 30-day grace period. Missing one can end COBRA permanently.
This retroactive feature means some people wait to elect and pay only if they need care during the election window. That’s risky if you miss a deadline, so mark dates carefully.
What COBRA costs
The plan can charge up to 102% of the total premium, meaning the employer’s share as well as yours, plus 2% for administration. Based on 2025 averages:
| While employed (worker share) | On COBRA (102% of total) | |
|---|---|---|
| Single, monthly | about $120 | about $793 |
| Family, monthly | about $571 | about $2,294 |
Our calculation from KFF 2025 average premiums ($9,325 single, $26,993 family).
COBRA vs. a Marketplace plan
| Choose COBRA if… | Choose the Marketplace if… |
|---|---|
| You’re mid-treatment and need the same doctors | Your income qualifies for subsidies |
| You’ve already met this year’s deductible | You want lower premiums |
| You’ll start a new job with cover soon | You need cover for longer than 18 months |
| Your income is above 400% of poverty and COBRA is competitive | The plan network suits you |
Losing job-based cover gives you 60 days to enroll in a Marketplace plan. If you voluntarily drop COBRA later, you generally must wait until open enrollment, so decide carefully. See our Marketplace guide and subsidies guide.
Other alternatives
- A spouse’s or parent’s plan (children can stay on a parent’s plan until 26). Losing cover is a qualifying event to join.
- Medicaid, if your income has fallen; see Medicaid vs. Marketplace.
- Medicare, if you’re 65 or older; COBRA doesn’t replace Medicare enrollment.
- Short-term plans only as a last-resort bridge; see short-term health insurance.
Frequently asked questions
How long can I keep COBRA?
Usually 18 months after a job loss or reduced hours, and up to 36 months for spouses and dependents after events such as divorce or death.
How much does COBRA cost?
Up to 102% of the full premium. Based on 2025 averages, about $793 a month for single cover and $2,294 for family cover.
How long do I have to sign up for COBRA?
At least 60 days from the later of losing cover or receiving your election notice. Cover is retroactive once you elect and pay.
Is COBRA cheaper than Marketplace insurance?
Often not, especially if you qualify for subsidies. It can make sense if you need the same doctors or have met your deductible.
Does COBRA apply to small employers?
Federal COBRA applies to employers with 20 or more employees. Many states have similar rules for smaller employers.
Sources
- U.S. Department of Labor – COBRA FAQs for employers
- U.S. Department of Labor – Employer’s guide to COBRA
- KFF – 2025 Employer Health Benefits Survey: summary of findings
- Healthcare Insider – Marketplace deadlines for 2027 coverage (Sept 2026)
- healthinsurance.org – Will you receive an ACA premium subsidy?
Insurance prices, discounts and rules change often and vary by state. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.