COBRA

Insurance

Consolidated Omnibus Budget Reconciliation Act (COBRA) lets former employees continue employer-sponsored health insurance for up to 18 months (36 in some cases) after job loss, reduced hours, or other qualifying events. You pay the full premium (employer + employee portion) plus a 2% administrative fee — typically 4-5× what you paid as employee. COBRA premiums often run $700-$2,000/month per person. Alternatives often beat COBRA: marketplace plans qualify for Premium Tax Credits (PTCs) based on lower expected income, often cheaper than COBRA. The 60-day COBRA election window also serves as a marketplace special enrollment period — evaluate both before committing.