Leaving a job doesn’t have to mean going without health insurance. The key is acting within the deadlines.
Key points
- COBRA lets you keep your employer’s group health plan, usually for up to 18 months.
- You usually have 60 days to elect COBRA after you’re notified, and coverage can apply back to when it ended.
- COBRA can cost up to 102% of the full premium, because you pay the employer’s share too.
- Losing job-based coverage opens a 60-day special enrollment period on the Marketplace.
- Compare total costs, networks and drug coverage before choosing.
When a job ends, so does job-based health coverage, sometimes at the end of your last day or the end of that month. You have options, but each comes with deadlines.
Option 1: COBRA
COBRA is a federal law that lets you, and family members on your plan, keep the same employer group coverage for a limited time.
- How long: usually up to 18 months, and up to 36 months for some family members after certain events.
- Cost: up to 102% of the full premium, since you now pay the employer’s share plus a small administrative fee.
- Deadline: you generally have 60 days to elect COBRA after receiving the election notice. Coverage can apply back to the date your job coverage ended.
COBRA’s big advantage is continuity: same doctors, same drug list and any progress toward this year’s deductible.
Option 2: The Marketplace
Losing job-based coverage triggers a special enrollment period: you usually have 60 days to pick a Marketplace plan. Depending on your income, premium tax credits may make it much cheaper than COBRA. Our Marketplace guide explains how it works.
Option 3: Medicaid or a spouse’s plan
- Medicaid: eligibility depends on your income and state, and you can apply at any time.
- A spouse’s or partner’s employer plan: losing your coverage usually allows you to join within a limited window, often 30 days.
Helpful tip
Ask for your COBRA notice and the date your current coverage ends, then compare all options side by side. Because COBRA can apply retroactively, some people wait to elect it, but don’t let the deadline pass.
How to compare
| Factor | Questions to ask |
|---|---|
| Monthly cost | What’s the premium after any tax credits? |
| Deductible | How much have you already paid toward this year’s deductible? |
| Doctors | Are your providers in the network? |
| Prescriptions | Are your medicines covered? |
If you’re near 65
If you’re close to Medicare eligibility, timing matters; see our guide to Medicare basics. For protecting your income if you can’t work, see our guide to disability insurance.
Frequently asked questions
Does every employer offer COBRA?
Federal COBRA generally applies to employers with 20 or more employees. Many states have similar ‘mini-COBRA’ laws for smaller employers.
Can I have COBRA for longer than 18 months?
Some events, such as divorce or the death of the covered employee, can allow up to 36 months for family members. Disability can also extend coverage in some cases.
Can I switch from COBRA to a Marketplace plan later?
If you drop COBRA voluntarily outside open enrollment, you usually can’t get a special enrollment period. When COBRA runs out, you can.
What if my income drops a lot?
You may qualify for Medicaid, depending on your state, or for premium tax credits on a Marketplace plan.
This guide is general information, not insurance, tax or legal advice. Rules, limits and deadlines change each year, so check HealthCare.gov, Medicare.gov or your insurer for your situation.