If you’ve just lost a job or had your work hours cut, you’ve probably heard the term “COBRA” and wondered if it’s worth the hassle. In simple terms, COBRA lets you keep the same health plan you had while you were employed, but you pay the full premium yourself. It’s not a new plan – it’s the exact same doctors, networks, and prescriptions you’re used to, just without the employer’s contribution.
COBRA isn’t for everyone, but most full‑time workers at companies with 20 or more employees can qualify. If you get laid off, move to part‑time, or your spouse loses coverage, you usually have a 60‑day window to elect COBRA. Even retirees who lose benefits because their former employer stops offering a plan can use it. The key is that the loss of coverage must be “qualifying” – quitting voluntarily doesn’t count.
When you get the COBRA notice, act fast. You have 60 days to sign up, and the coverage starts retroactively to the day your job ended. The paperwork can be confusing, so write down every deadline and keep a copy of the notice. You’ll pay the entire premium plus a 2 % admin fee – often 100 % of what your employer used to pay. That can feel steep, but it’s usually cheaper than buying a brand‑new plan on the open market, especially if you have pre‑existing conditions.
To keep costs down, compare the COBRA premium with ACA marketplace plans. If you can find a comparable plan for less, you can drop COBRA after 60 days, but only if you’re sure the new plan covers your needs. Some employers also offer a “price‑break” if you pay the whole year up front – ask your HR department if that’s an option.
Don’t forget the grace period. If you miss a payment, you have 30 days to catch up before coverage ends. During that time, you can still get care, but any claim you make will be billed at the full rate until you’re back on track. Set up automatic payments if you can to avoid accidental lapses.
Finally, know your rights. You can appeal a deny, ask for a lower premium if you experience a hardship, or move to a different plan if the employer changes the network. Staying organized and asking questions early saves a lot of stress later.
COBRA isn’t a forever solution, but it gives you a bridge when you need it most. By understanding eligibility, deadlines, and cost‑saving tricks, you can keep your health covered without breaking the bank.
