Estimated reading time: 14 minutes

Key Takeaways

• COBRA rights after termination let eligible workers and families keep the same employer health plan for a limited time after job loss, but you must act within 60 days.

• Expect the plan administrator to send a written COBRA election notice (often within 14 days of being notified of your qualifying event) with costs, deadlines, and how to enroll.

• COBRA premiums are usually the full group cost plus up to a 2% administrative fee (up to 102% of plan cost), and some disability extensions can increase the total to 150%.

• Compare COBRA vs Marketplace coverage on cost and continuity of care; Marketplace plans may offer subsidies, while COBRA preserves your exact doctors, network, and deductibles.

• If your employer had fewer than 20 employees, a state “mini-COBRA” may provide continuation options—check your state’s rules.

Table of Contents

• Introduction

• What Are COBRA Rights After Termination?

• Definition of COBRA Continuation Health Insurance

• Eligibility Checklist

• Qualifying Events

• Who Is Covered

• Mini‑COBRA State Coverage

• How to Enroll in COBRA

• Step-by-Step Enrollment Process

• Documentation Checklist

• Where and How to Submit Forms

• If Notice Is Missing or Late

• Sample 60-Day Timeline

• Quick Steps to Enroll

• COBRA Deadline to Elect Coverage

• The 60-Day Rule

• If You Miss the Deadline

• Tips to Avoid Missing the Deadline

• Retroactive Coverage

• COBRA Premium Assistance and Costs

• How COBRA Premiums Are Calculated

• Disability Extension Premium

• Premium Assistance Programs

• Cost Comparison Example

• Practical Cost Checklist

• COBRA vs Marketplace Coverage: Which Is Better?

• Coverage Continuity

• Costs and Subsidies

• Eligibility and Enrollment Windows

• Doctors and Ongoing Care

• Duration of Coverage

• When to Consider Marketplace Instead

• Action Items for Comparing Plans

• Practical Decision Checklist and Examples

• Step-by-Step Decision Checklist

• Scenario A: Short-Term Unemployment, Ongoing Care

• Scenario B: Long-Term Unemployment, Low Income

• Common Questions and Quick Answers

• Resources and Authoritative Links

• Summary and Final Thoughts

• Conclusion

• FAQ

Introduction

If you’ve lost a job or been terminated, understanding your COBRA rights after termination is critical to avoid gaps in coverage. Many people also search for COBRA continuation health insurance and how to enroll in COBRA right after a layoff so they can keep seeing their doctors and avoid surprise bills.

COBRA (the Consolidated Omnibus Budget Reconciliation Act) is a federal law that lets eligible employees and their families temporarily continue their employer-sponsored group health plan after certain qualifying events, including termination. See the Department of Labor’s COBRA overview and a consumer-friendly explainer from Cigna on what COBRA insurance is for context.

This guide answers the core questions fast: what COBRA does, how to enroll in COBRA, the election deadline, costs and possible premium assistance, and how COBRA compares to Marketplace coverage if you want to evaluate subsidies.

If your job loss was part of a layoff, you may also be weighing severance, unemployment, and health coverage together. For broader money and benefits timing issues after a separation, see our guide to severance and unemployment benefits interactions and the WARN Act notice requirements in mass layoffs.

What Are COBRA Rights After Termination?

COBRA continuation health insurance is the legal right for eligible employees and dependents to continue the exact same group health plan benefits after a qualifying event. See the Centers for Medicare & Medicaid Services’ Understanding COBRA technical assistance (PDF) and Cigna’s COBRA overview for a plain-English summary.

Definition of COBRA Continuation Health Insurance

Under COBRA, you keep the same plan—same network, deductibles, formulary, and rules—just without the employer subsidy. This preserves continuity of care during a job transition and is especially important if you are in treatment or have complex care needs, as highlighted in the CMS Understanding COBRA guide (PDF).

Eligibility Checklist

• Employer size: worked for an employer with 20 or more employees (note: some states require coverage for smaller employers via mini‑COBRA; encourage checking state rules). Source: Medicare.gov COBRA basics.

• Covered under the employer’s group health plan at the time of the qualifying event.

• Qualifying events that trigger COBRA rights — listed below.

Qualifying Events

• Job loss or reduction in hours (except termination for gross misconduct). See Cigna’s explanation of COBRA.

• Death of the covered employee. See the CMS COBRA guide (PDF).

• Divorce or legal separation. See Cigna and CMS (PDF).

• A dependent child losing dependent status (for example, aging out). See Cigna and CMS (PDF).

Who Is Covered

COBRA rights can extend to the employee, the employee’s spouse, and dependent children so long as they were covered under the group plan at the time of the qualifying event. See both Cigna’s COBRA primer and the CMS guide (PDF).

Mini‑COBRA State Coverage

If your employer has fewer than 20 employees, some states have “mini‑COBRA” laws; check your state insurance department for rules. For an example of a state resource, see the California DMHC page on keeping coverage (COBRA).

How to Enroll in COBRA

Below is a clear, step-by-step path for how to enroll in COBRA, aligned with federal guidance and consumer-focused explanations.

Step-by-Step Enrollment Process

1. Employer notifies plan administrator. After your qualifying event (such as job loss), your employer or insurer informs the group health plan. See Cigna’s COBRA overview and the CMS Understanding COBRA (PDF).

2. Plan administrator sends a COBRA election notice. The plan administrator is expected to send a written election notice—commonly within 14 days after being notified—describing how to elect coverage, the premium, deadlines, and where to send payment. See Cigna and Medicare.gov’s COBRA basics.

3. Review the notice and compare options. Look at the premium amount, what’s included (medical, dental, vision), and your network. Consider whether income-based Marketplace subsidies might make non-COBRA plans more affordable (see comparison below and CMS resources on the Marketplace and COBRA rules (PDF)).

4. Complete and return the election form by the deadline. Follow the notice instructions for how to elect and how to pay to activate coverage on time.

What your election notice typically includes: plan name, coverage options, premium amount, deadlines, instructions for election and payment, plan administrator contact info, and any documentation required.

Documentation Checklist

• Copy of COBRA election notice

• Employer/plan name and group policy or plan number

• Social Security numbers for covered individuals

• Proof of qualifying event if requested (termination letter, divorce decree, birth certificates, etc.)

• Any forms required by the plan administrator

Where and How to Submit Forms

Submission methods vary by plan—mail, fax, or an online portal. Always follow the plan administrator’s instructions in the election notice. If mailing, consider certified or tracked mail and keep copies of everything you send.

If Notice Is Missing or Late

Contact your employer’s HR or benefits team first. If that does not resolve the issue, reach out to the Department of Labor’s Employee Benefits Security Administration (EBSA) using the DOL’s COBRA overview and contact resources.

Sample 60-Day Timeline

Example: Coverage end date = April 30. Plan administrator sends election notice on May 10. Your 60‑day election window runs until the later of 60 days from May 10 or 60 days from April 30. In plain language, you count 60 days from each date and take the later end date as your deadline. See the “later of” rule below and the CMS COBRA guide (PDF) for technical details.

Quick Steps to Enroll

• Watch for your written COBRA election notice and note the 60‑day election deadline.

• Compare costs vs continuity of care; confirm what’s included (medical, dental, vision) and the monthly premium.

• Submit your signed election form and first payment as instructed (keep proof of delivery).

COBRA Deadline to Elect Coverage

The COBRA deadline to elect is strict—missing it can permanently close your window to continue that employer plan.

The 60-Day Rule

You have 60 days to elect COBRA coverage. The 60‑day clock starts on the later of (a) the date you receive the COBRA election notice or (b) the date your coverage would otherwise end. See Cigna’s summary of election timelines and the CMS technical COBRA guide (PDF).

If You Miss the Deadline

If you do not elect within the 60‑day window, you generally lose the right to continue that employer coverage under COBRA. See CMS’s warning in the Understanding COBRA guide (PDF).

Tips to Avoid Missing the Deadline

• Mark your calendar with both the election-notice receipt date and the coverage-end date. Set two reminders: 30 days and 7 days before the cutoff.

• Keep copies of your election notice and any proof of mailed election (for example, certified mail receipts).

• If your notice is late or lost, contact the plan administrator immediately and document your attempts (dates, times, who you spoke with).

Retroactive Coverage

Electing within the 60‑day window typically allows coverage to be retroactive to the date you lost coverage, so there is no gap if you elect on time and pay as instructed. Check your election notice for payment deadlines and any conditions. See Cigna’s consumer overview and the CMS COBRA resource (PDF).

COBRA Premium Assistance and Costs

Understanding costs is critical before you elect COBRA, especially while you budget around your final paycheck and unemployment benefits. For related financial considerations, you may find these guides helpful: final paycheck laws and timing and how to appeal an unemployment denial.

How COBRA Premiums Are Calculated

COBRA premiums are usually the full cost of the group premium plus up to a 2% administrative fee—up to 102% of the plan cost. See both Cigna’s COBRA explanation and CMS’s Understanding COBRA (PDF).

Disability Extension Premium

During certain disability extensions, total premiums may be up to 150% of the cost. See confirmation in Cigna’s consumer guide and CMS’s technical guide (PDF).

Premium Assistance Programs

Government premium assistance (subsidies) has been offered at times, like during the COVID‑19 pandemic, but these programs are not permanent and depend on legislation. Check current federal or state programs at the time of job loss; see CMS’s discussion in Understanding COBRA (PDF). Also check your state insurance department for temporary programs that may help with premiums.

Cost Comparison Example

Use this simple math to compare options:

• Current group premium (employee + family) = $800/month.

• COBRA cost = $800 × 102% = $816/month.

• If a disability extension applies, up to 150% = $1,200/month.

Compare these figures to Marketplace plan estimates after tax credits. CMS’s COBRA guide notes how Marketplace enrollment works when you lose job-based coverage; see the Marketplace and COBRA discussion (PDF).

Practical Cost Checklist

• Ask the plan administrator for the exact COBRA premium (in writing) before you elect.

• Confirm whether dental and vision are included or offered separately.

• Verify whether your provider network and any prior authorizations or ongoing treatment plans will continue uninterrupted.

• Check if your severance agreement addresses benefits continuation; for broader severance issues, see our severance agreement review guide.

COBRA vs Marketplace Coverage: Which Is Better?

Use a simple decision framework: cost vs continuity of care. CMS and Cigna both outline the tradeoffs—COBRA preserves your exact plan, while Marketplace coverage may cost less if you qualify for subsidies. See CMS’s technical overview (PDF) and Cigna’s consumer explainer.

Coverage Continuity

COBRA: Keeps the exact same employer plan, providers, deductibles, and in‑network coverage. See CMS Understanding COBRA (PDF).

Marketplace: Plan benefits and provider networks will likely change; availability varies by location.

Costs and Subsidies

COBRA: You pay the full premium plus up to a 2% admin fee (up to 102% of plan cost). A disability extension may raise the total to 150%. See Cigna’s cost discussion and CMS (PDF).

Marketplace: You may qualify for income-based premium tax credits and cost-sharing reductions, often lowering monthly premiums if eligible (see CMS’s discussion of Marketplace enrollment in the COBRA guide (PDF)).

Eligibility and Enrollment Windows

COBRA: Available only after a qualifying event for eligible group plans.

Marketplace: Job loss triggers a Special Enrollment Period (SEP) that lets you enroll outside Open Enrollment; see the CMS technical overview of COBRA and Marketplace timing in the Understanding COBRA (PDF).

Doctors and Ongoing Care

COBRA: You keep your same doctors if they are in your employer plan’s network.

Marketplace: You may need to change providers or plans depending on what’s offered in your area.

Duration of Coverage

COBRA: Typically 18 months for standard events; certain events can extend coverage up to 36 months. See the CMS COBRA guide (PDF).

Marketplace: Coverage is annual and renewable each year; you re-evaluate choices at renewal.

When to Consider Marketplace Instead

• COBRA premiums are unaffordable and you may qualify for Marketplace tax credits or Medicaid.

• You do not need the exact same provider network or already plan to change doctors.

• You expect a longer period of unemployment and prefer a lower monthly premium.

Action Items for Comparing Plans

• Get the exact COBRA premium in writing from the plan administrator.

• Estimate Marketplace premiums and tax credit eligibility at Healthcare.gov or your state Marketplace; CMS references Marketplace enrollment in the Understanding COBRA guide (PDF).

• Compare out-of-pocket limits, deductibles already met, provider access, and prescription coverage.

Practical Decision Checklist and Examples

Use this checklist to choose confidently between COBRA continuation health insurance and Marketplace coverage.

Step-by-Step Decision Checklist

1. Calculate the full monthly COBRA premium (ask your plan administrator for an exact figure).

2. Estimate Marketplace premiums after subsidies (use Healthcare.gov or your state Marketplace tools; CMS describes Marketplace timing in the Understanding COBRA (PDF)).

3. Compare networks: list your essential doctors and facilities; check in-network status on each plan.

4. Compare benefits: note deductibles you’ve already met, ongoing prescriptions, and pre-authorizations.

5. Consider duration: expected unemployment length vs COBRA’s 18–36 months of eligibility (see CMS (PDF)).

6. Run financial scenarios: short-term vs long-term affordability using your actual numbers.

If your loss of coverage followed a termination you believe was unlawful, preserve your options while you stabilize benefits. Our in-depth guides on wrongful termination and ERISA benefit appeals for denied plan benefits can help you protect your rights in parallel.

Scenario A: Short-Term Unemployment, Ongoing Care

You are mid-treatment with a specialist and have met your deductible. You expect to start a new job within four months. COBRA likely makes sense because it preserves your exact care team and plan rules, helping you avoid disruptions or new deductibles.

Scenario B: Long-Term Unemployment, Low Income

You project at least six months before reemployment, and your income may qualify you for significant Marketplace subsidies. Marketplace coverage likely fits better, especially if your providers have acceptable alternatives in-network on a subsidized plan.

Common Questions and Quick Answers

How long can I keep COBRA?

Typically 18 months for job loss; certain extensions can apply up to 36 months depending on the qualifying event. See the CMS Understanding COBRA guide (PDF).

Will my doctors and benefits stay the same?

Yes—COBRA continues the existing plan, so benefits and network remain the same. See Cigna’s COBRA overview and CMS (PDF).

Can I get financial help with COBRA?

Subsidies have been offered temporarily by Congress in the past (for example, during COVID‑19), but these are not standard. Check current federal or state programs for up-to-date options; see CMS’s note in the Understanding COBRA (PDF).

What if I can’t afford COBRA?

Compare Marketplace plans and check eligibility for Medicaid or Marketplace subsidies. See Cigna and CMS’s Marketplace details in the COBRA guide (PDF). If your job loss followed a layoff, also review WARN Act notice requirements and consider the timing of unemployment benefits using our unemployment denial appeal guide.

Resources and Authoritative Links

• Department of Labor — COBRA overview

• CMS — Understanding COBRA (technical assistance PDF)

• Cigna — What is COBRA insurance?

• Medicare.gov — COBRA coverage basics

• California DMHC — Keep your health coverage (COBRA) example

Summary and Final Thoughts

COBRA rights after termination give you a critical safety net to keep your existing health coverage, doctors, and authorizations during a job transition. But the window is short: you generally have 60 days to elect, and missing it can end your right to continue the plan. See CMS’s Understanding COBRA (PDF) and Cigna’s COBRA guide for the technical rules and consumer tips.

Before you enroll, get the exact COBRA premium and compare it to Marketplace options that may offer subsidies. If you need continuity of care or already met your deductible, COBRA can be worth the cost. If price is the main concern, Marketplace coverage may be better. As you budget, review the timing of your last wages and separation benefits using our guides on final paycheck laws and severance and unemployment benefits.

If the plan administrator does not send an election notice, contact HR and then the DOL’s EBSA through the COBRA overview page. For disputes about plan rights or claim denials, see our practical guide to appealing denied benefits under ERISA.

Conclusion

COBRA rights after termination protect you from gaps in care—but only if you act quickly and compare costs. Confirm your deadlines, request the exact premium, and decide whether COBRA or Marketplace coverage fits your care and budget needs.

Need help now? Get a free and instant case evaluation by US Employment Lawyers. See if your case qualifies within 30-seconds at https://usemploymentlawyers.com.

FAQ

Do I have to choose COBRA if I’m eligible for the Marketplace?

No. Losing job-based coverage usually creates a Marketplace Special Enrollment Period (SEP), so you can compare and choose a Marketplace plan instead of COBRA. CMS explains how COBRA and Marketplace timing interact in the Understanding COBRA resource (PDF).

Can I switch from COBRA to the Marketplace later?

Often yes, but the timing matters. You can typically switch during the annual Open Enrollment or if you have another qualifying event. Review Marketplace timing in CMS’s COBRA guidance (PDF) and weigh continuity of care before switching.

Does COBRA include dental and vision?

It depends on your employer’s plan and what you elect. COBRA continues eligible group plan benefits; confirm whether dental and vision are included or offered separately in your election notice. See Cigna’s COBRA overview and the CMS technical guide (PDF).

What if my employer had fewer than 20 employees?

Federal COBRA generally applies to employers with 20+ employees, but many states have “mini‑COBRA” rules for smaller employers. Check your state’s insurance department; for example, see the California DMHC’s guidance and Medicare.gov’s basics on employer size in COBRA coverage.

How quickly should I expect a COBRA election notice?

Plan administrators commonly send election notices within 14 days after being notified of your qualifying event. If you don’t receive a notice, contact HR and then the DOL’s EBSA using the COBRA overview. See timelines referenced by Cigna and Medicare.gov.

Disclaimer: This article provides general information about COBRA rights after termination and how to enroll in COBRA. It is not legal advice. For advice on your specific situation, contact your plan administrator, a licensed benefits advisor, or the Department of Labor.