Question 1

How is COBRA cost calculated?

Accepted Answer

Your COBRA premium equals your share of the monthly premium plus your employer's share, multiplied by 1.02 (the 2% administration fee allowed under federal law). Most employees are shocked because they only see their payroll deduction — not the full premium. The average employer contributes $523/month for single coverage and $1,522/month for family coverage.

Question 2

How long does COBRA coverage last?

Accepted Answer

Federal COBRA lasts up to 18 months after a qualifying event (like a layoff). If you become disabled during that period, you may extend to 29 months. Some states have "mini-COBRA" laws that extend coverage further or cover smaller employers not subject to federal COBRA (which requires 20+ employees). California, New York, and New Jersey are notable examples.

Question 3

How long do I have to elect COBRA coverage?

Accepted Answer

You have 60 days from the later of two dates: the date your coverage ends, or the date you receive your COBRA election notice. Missing this 60-day window means you permanently lose the right to elect COBRA for that qualifying event. The election can be backdated — you pay retroactively for any months you want covered.

Question 4

Is COBRA ever cheaper than ACA marketplace insurance?

Accepted Answer

COBRA can be cheaper when your employer's plan has a strong network you depend on, when your income is too high for ACA subsidies, or when you have ongoing specialist care mid-year (changing plans resets deductibles). However, for most laid-off workers — especially those with household income below 400% of the Federal Poverty Level — ACA subsidies make marketplace plans significantly cheaper.

Question 5

Does losing my job qualify me for an ACA Special Enrollment Period?

Accepted Answer

Yes. Losing employer-sponsored health coverage is a qualifying life event that opens a 60-day Special Enrollment Period on the ACA marketplace (healthcare.gov). You can enroll even outside the annual Open Enrollment window. This is separate from, and runs concurrently with, your COBRA election window.

COBRA Health Insurance Calculator