COBRA
Federal law allowing 18-36 month continuation of employer health coverage after a qualifying event — at full cost.
Full explanation
The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers with 20+ employees to offer continuation of group health coverage after employment ends or other qualifying events. Coverage period is 18 months (sometimes 29 or 36 months with disability or specific events). You pay the full premium plus a 2% admin fee — typically $700-$2,000/mo for family coverage. Loss of employer coverage triggers a 60-day ACA Special Enrollment Period; for most people who've had income drop with a job loss, an ACA marketplace plan with subsidies is dramatically cheaper than COBRA. Once you elect COBRA, you can't drop it mid-year and use the marketplace SEP.
📎 Primary source: official source
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