Health Insurance
COBRA
COBRA continuation coverage preserves your existing group health plan after a qualifying event but requires you to pay the full premium — both employee and employer shares — plus an administrative fee.
Last reviewed: May 2026 · Editorial methodology
Definition
The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires most employers with 20 or more employees to offer departing workers the option to continue their group health insurance for up to 18 months (36 months in some circumstances). Qualifying events include job loss for reasons other than gross misconduct, reduced work hours that cause loss of coverage, divorce from a covered employee, and a dependent child aging off the plan. The major drawback of COBRA is cost: the employee pays 100% of the group premium — both their share and the employer's share — plus a 2% administrative fee. For 2026, average employer-sponsored family premiums exceed $25,000 annually, meaning COBRA continuation can cost over $2,000 per month. Enrollment must be elected within 60 days of the qualifying event or notice of COBRA rights, whichever is later. COBRA is often compared unfavorably to ACA marketplace plans, which may offer premium tax credits that make marketplace coverage significantly cheaper during a qualifying special enrollment period triggered by job loss.
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Cover Forge USA Editorial Team
Editorial Lead
This article was researched and written by the Cover Forge USA editorial team against federal sources (NAIC, CMS, FEMA, DOL, SSA, state DOIs) and standard policy forms. Bylines organize content by topic — they do not assert individual licensure. See our editorial-policy for details.
Reviewed 2026-06-14
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