Losing your job is stressful enough — losing your health insurance on top of it makes things even harder. That's where COBRA comes in. The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives you the right to continue your employer-sponsored health insurance coverage for a limited period after leaving a job.

What Is COBRA?

COBRA is a federal law that requires employers with 20 or more employees to offer continuation coverage to workers who lose their group health benefits due to a qualifying event. It applies to health, dental, and vision plans.

Qualifying Events

You may be eligible for COBRA if you experience any of these qualifying events:

Voluntary or involuntary job loss (excluding gross misconduct)
Reduction in work hours that causes loss of benefits eligibility
Divorce or legal separation from a covered employee
Death of the covered employee
A dependent child aging out of coverage (usually at age 26)

How Long Does COBRA Last?

COBRA coverage typically lasts 18 months for job loss or reduced hours. In some cases — such as disability or a second qualifying event — coverage can extend to 29 or 36 months.

How Much Does COBRA Cost?

This is where many people are surprised. Under COBRA, you pay the full premium — both the employee and employer portions — plus a 2% administrative fee. For many individuals, this can be $400–$700 per month or more for a single person.

Deadlines You Must Know

Your employer must notify you of your COBRA rights within 14 days of a qualifying event. You then have 60 days to elect coverage, and once elected, 45 days to make your first premium payment (which covers back to the date of the qualifying event).

Alternatives to COBRA

If COBRA premiums are too expensive, consider marketplace plans through Healthcare.gov during a Special Enrollment Period, or short-term health insurance for temporary coverage. Valorin Insurance can help you compare options and find the most cost-effective path forward.