How long does COBRA coverage last?

COBRA (Consolidated Omnibus Budget Reconciliation Act) allows you to continue your employer-sponsored group health coverage for a limited period after it would otherwise end. For the most common qualifying event — involuntary job loss or voluntary resignation (but not termination for gross misconduct) — the standard COBRA period is 18 months. If you are disabled at the time of the qualifying event (or become disabled within 60 days), coverage can be extended to 29 months.

For other qualifying events — divorce or legal separation from the covered employee, death of the covered employee, or a dependent child losing dependent status under the plan — the COBRA period is 36 months. If a second qualifying event occurs during an initial 18-month COBRA period (for example, the covered employee dies after being laid off), beneficiaries may be entitled to extend to 36 months total.

COBRA applies to employers with 20 or more employees. You must elect COBRA within 60 days of losing coverage (or receiving the election notice, whichever is later) and pay premiums retroactively to the date coverage would have ended. Premiums can be up to 102% of the full group rate — often significantly more than you paid as an employee. Before electing COBRA, compare ACA marketplace plans — if you lost job-based coverage, you have a 60-day special enrollment window.