This content is for general informational purposes and does not constitute medical, legal, or financial advice. Healthcare rules and costs change annually. Last reviewed: January 1, 2025. Always verify current details with your insurer, employer, or a licensed healthcare navigator.
COBRA
A law allowing you to keep employer-sponsored insurance after leaving a job, at full cost.
Full Definition
COBRA (Consolidated Omnibus Budget Reconciliation Act) allows you and your dependents to continue employer-sponsored health coverage for up to 18–36 months after a qualifying event such as job loss, reduction in hours, divorce, or a dependent aging out of coverage. You pay the full premium — your share plus the employer's share — plus up to 2% administrative fee, making COBRA expensive but useful for maintaining coverage continuity.
Real-World Example
You leave your job where you paid $200/month for coverage (employer paid $500/month). On COBRA, you now pay the full $700/month plus a small admin fee — but you keep the same plan and doctors.
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