The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to maintain your employer's health plan after your job ends. This federal law, in effect since 1986, provides continuity of care with the same coverage, network, and benefits you had as an employee.
Who Qualifies for COBRA?
- Your employer has 20 or more employees
- You lose coverage due to retirement, quitting, being fired, or reduced work hours
- You're a surviving, divorced, or separated spouse
- You're a dependent child who loses dependent status under the plan
Key Features of COBRA Coverage
What You Keep:
- Exactly the same plan you had through your employer
- Same doctors, hospitals, and provider network
- Same benefits, deductibles, copayments, and coinsurance
- Credit for any deductibles already paid during the plan year
- Same prescription drug coverage
How Long It Lasts:
- Typically 18 months for job loss or reduced hours
- Up to 36 months in certain situations (divorce, dependent aging out)
- Connecticut state continuation may extend coverage up to 30 months in some cases
What It Costs:
- Full premium (your portion + employer's portion) plus 2% administrative fee
- Usually much more expensive than what you paid as an employee
- Must pay monthly premiums on time to maintain coverage
Important Deadlines
Election Period: You must choose COBRA within 60 days of losing coverage Payment: First premium payment typically due within 45 days of electing COBRA.
When COBRA Makes Sense
COBRA may be your best option if:
You're mid-treatment
- Currently seeing specialists for ongoing conditions
- In the middle of a treatment plan you don't want to interrupt
- Have established relationships with providers in the network
You've met your deductible
- Already paid your annual deductible for the year
- Have high medical expenses coming up
- Would lose progress toward out-of-pocket maximums with a new plan
You expect to find a job quick
- Anticipate finding new employer coverage soon
- Want to avoid gaps in coverage
- Need bridge coverage for a few months
You have complex health needs
- Take expensive medications covered by your current plan
- Need specific medical equipment or services
- Want to avoid prior authorization delays with a new insurer
Important Considerations
- Affordability Risk: Make sure you can afford COBRA payments for the entire period you need coverage. If you start COBRA then stop paying due to cost, you may not be able to get other insurance until the next open enrollment period.
- No Changes Allowed: You cannot modify your COBRA coverage—you must keep exactly what you had as an employee.
- Conversion Options: Some insurers offer the option to convert to an individual policy when COBRA ends, but these are typically expensive and offer limited benefits. However, if your former employer makes changes to active employee coverage, such as changing insurance carriers to making changes to the plan features, your coverage will change in the same manner.
When to Consider Other Options
COBRA may not be the best choice if:
- Cost is a Major Factor. COBRA is often the most expensive option since you pay the full premium. Compare costs with:
- Access Health CT marketplace plans (which may qualify for subsidies)
- HUSKY Health (if you qualify based on reduced income)
- Spouse or family member's employer plan
- You Haven't Used Much Healthcare. If you haven't met much of your deductible and are generally healthy, a new plan might offer better value.
- Your Employer Plan Wasn't Great.
COBRA continues your exact same plan—if it had limited networks, high costs, or poor coverage, you might find better options elsewhere. Contact the Office of the Healthcare Advocate for help understanding your alternatives and making the best choice for your situation. We provide free assistance to Connecticut residents who have lost employer coverage:
- We explain all your coverage options and help you compare costs, benefits, and networks
- We help determine if you qualify for financial assistance for marketplace plans or HUSKY Health
- We assist with applications and enrollment for your chosen coverage option
- We advocate on your behalf if you encounter problems with eligibility or enrollment
- We help you understand the specific deadlines that apply to your situation