COBRA Health Insurance Eligibility and Alternatives

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
What is COBRA and how does it work?
Who’s eligible for COBRA health insurance?
If you have employer-sponsored health insurance and: | You and your family can buy COBRA health insurance for: |
---|---|
You quit or are terminated for any reason other than “gross misconduct.” | 18 months. |
Your weekly hours are reduced to the point where you lose health coverage. | 18 months. |
You have a qualifying disability and quit, are terminated or your hours are reduced. | 29 months. |
If you have employer-sponsored health insurance and: | Your spouse and/or dependents can buy COBRA health insurance for: |
---|---|
You enroll in Medicare. | 36 months. |
You become entitled to Medicare less than 18 months before losing your job or having hours reduced. | 36 months from Medicare eligibility. |
You divorce or legally separate. | 36 months. |
You die. | 36 months. |
If you have employer-sponsored health insurance and: | Your child can buy COBRA health insurance for: |
---|---|
Your child turns 26, losing dependent status. | 36 months. |
How much does COBRA health insurance cost?
COBRA health insurance deadlines
For termination or reduction of hours
The employer must notify the health plan administrator about a qualifying event. | Within 30 days of the qualifying event. |
The health plan administrator must notify the individual about COBRA rights. | Within 14 days of being notified by the employer. (Within 44 days of the qualifying event, if the employer runs its own health plan and there’s no separate administrator to notify.) |
Qualified beneficiaries can choose whether to continue coverage. | At least 60 days after being notified about COBRA rights. |
For divorce, separation or a dependent no longer qualifying
The employee or beneficiary must notify the health plan administrator about a divorce, legal separation or a dependent losing dependent status. | Within 60 days of the qualifying event. |
The health plan administrator must notify the individual about COBRA rights. | Within 14 days of being notified by the employer. |
Qualified beneficiaries can choose whether to continue coverage. | At least 60 days after being notified about COBRA rights. |
Alternatives to COBRA
Marketplace health insurance plans
Other health insurance options
- Buy other employer coverage if you get a new job with health benefits, or if your spouse’s employer offers a plan you can move to. Check with that plan’s benefits administrator to know for sure.
- Buy a private health plan through an insurance broker or directly from an insurance company.
- Apply for Medicaid if your income is low enough to qualify.