Definition
A federal right to keep your employer's group health plan for a limited time after leaving a job or other events, usually at full cost.
What it means
COBRA lets workers and their families keep group health coverage after certain events, such as job loss, reduced hours, divorce or the death of the employee. It generally applies to private employers and state and local governments with 20 or more employees; some states have similar laws for smaller employers. Coverage usually lasts 18 months after job loss or reduced hours and up to 36 months for some family members after other events, with a possible disability extension to 29 months. You can be charged the full premium, both your former share and the employer's share, plus a 2% administrative fee. You have at least 60 days to elect coverage. Losing job-based coverage also opens a special enrollment period for marketplace plans, which may cost less with a premium tax credit.
Example
If your employer paid $1,200 and you paid $300 of a $1,500 monthly family premium, COBRA can cost up to $1,530 a month ($1,500 plus 2%).
Illustrative numbers only. Your situation will differ.