Lost Your Job? Here's How COBRA Can Help You Keep Health Coverage

​Losing your job can be overwhelming, especially when it comes to maintaining health insurance. Fortunately, the Consolidated Omnibus Budget Reconciliation Act—better known as COBRA—offers a way to continue your employer-sponsored health coverage even after your employment ends.

What Is COBRA?
COBRA is a federal law that allows employees and their families to keep their group health insurance plan for a limited period after experiencing certain qualifying events, such as job loss, reduction in work hours, divorce, or death of the covered employee.

Who Qualifies for COBRA?
You may be eligible for COBRA coverage if:

• You were enrolled in your employer’s health insurance plan while employed.
• Your employer has 20 or more employees.
• You lost your job (voluntarily or involuntarily), or had a reduction in hours that caused you to lose health coverage.

Note: Termination due to gross misconduct may disqualify you from COBRA.

How COBRA Helps You Maintain Health Coverage
Here’s how COBRA benefits you during a period of job loss:

1. Continued Access to the Same Health Plan
   You retain the exact same coverage—including doctors, prescriptions, and benefits—that you had while employed.
   
   
2. Covers Your Dependents Too
   COBRA allows your spouse and dependent children to remain covered, even if only you lost the job.
   
   
3. Time to Find Alternatives
   COBRA gives you a buffer period to explore other health insurance options without losing coverage immediately.
   
   
4. Avoids Gaps in Coverage
   Prevents medical coverage lapses that could result in denied claims or higher out-of-pocket costs if an emergency arises.

How Long Does COBRA Coverage Last?
Typically, COBRA allows for:

• Up to 18 months of coverage after job loss or reduction in hours.
• Up to 36 months in special cases like divorce, death of the covered employee, or dependent status changes.

What Does It Cost?
Under COBRA, you pay the full cost of your health insurance premium—including the portion your employer previously covered—plus a 2% administrative fee.

• Example: If your total monthly premium was $600 and your employer paid $400, you’ll now be responsible for the full $600 + $12 (2%) = $612/month.

While this can feel expensive, it may still be more affordable than private health plans, especially if you have ongoing medical needs.

Alternatives to COBRA
If COBRA is too costly, consider these options:

• Marketplace Plans (HealthCare.gov) – Often include income-based subsidies.
• Medicaid – For low-income individuals and families.
• Spouse’s Employer Plan – If your spouse has coverage, you might qualify for special enrollment.

How to Enroll in COBRA
After your job ends:

• Your employer must notify the group health plan administrator.
• You’ll receive a COBRA election notice within 14–44 days.
• You have 60 days from the date of the notice to decide.
• Once elected, coverage is retroactive to the day your employer coverage ended.

Final Thoughts
COBRA can be a lifeline during uncertain times, ensuring you and your family don’t go without essential health coverage. While it may not be the cheapest option, it offers continuity and peace of mind while you transition into your next chapter.

Remember: Carefully compare COBRA with other available options to choose what’s best for your health and your budget.

At Choice Enrollment, we strive to provide our customers with reasonable rates and comprehensive coverage. We will exceed your expectations to assist you with whatever you need. If you have any concerns or want a free quote from our agency, don't hesitate to contact us at (719) 581-5527 or CLICK HERE. 

Disclaimer: The information presented in this blog is intended for informational purposes only and should not be considered as professional advice. It is crucial to consult with a qualified insurance agent or professional for personalized advice tailored to your specific circumstances. They can provide expert guidance and help you make informed decisions regarding your insurance needs.​