COBRA & Under-65 Health Insurance Guidance
Reviewed by Prodest Insurance Group, a licensed insurance agency (NPN 19515569) · Updated 28 October 2026 against current federal guidance.
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COBRA is triggered by a loss of coverage caused by a qualifying event. For employees, the qualifying events are a reduction in hours or the end of employment for any reason other than gross misconduct. Federal law does not distinguish between quitting and being let go. All COBRA qualifying events →
Federal COBRA covers employers with 20 or more employees. If your employer is smaller, your state's continuation law may give you similar rights, often for a shorter period. COBRA and small employers →
| Step | Deadline | What to know |
|---|---|---|
| Your employer coverage ends | Your last day, or the end of that month | Depends on the plan; ask HR before you give notice |
| Employer notifies the plan | Within 30 days | Applies when an outside administrator runs the plan |
| You receive the election notice | Within 14 days after that | Up to 44 days if your employer administers the plan itself |
| You elect COBRA | 60 days from the notice or the loss of coverage, whichever is later | Coverage is retroactive, so there is no gap if you elect in time |
| First premium due | 45 days after you elect | Covers every month back to the day your plan ended |
| Marketplace enrollment window | 60 days before and 60 days after you lose coverage | Apply before your last day to avoid any gap |
Many employer plans keep you covered through the last day of the month you leave. If yours does, a last day of October 1 and a last day of October 31 give you the same coverage, which can save a month of COBRA premiums. Other plans end coverage on your last day of work. Ask HR how your plan handles it before you give notice.
If you have planned care, such as a surgery, a birth, or ongoing treatment, try to schedule it while you are still on the employer plan, or confirm the provider is in network on whatever plan comes next.
| Option | Best for | Watch out for |
|---|---|---|
| COBRA | Keeping the same doctors and the deductible you have already met | You pay the full premium plus 2 percent, with no government help |
| Marketplace (Obamacare) plan | Lower premiums if your household income qualifies for tax credits | New network, and the deductible starts over |
| A spouse or parent's plan | Often the cheapest option when available | The enrollment window can be as short as 30 days |
| Medicaid | Households whose income dropped with the job | Eligibility rules vary by state |
| A new employer's plan | Anyone starting a new job soon | Waiting periods of up to 90 days are allowed |
If you are leaving for another job, its health plan may not start right away. Employers can make you wait up to 90 days. COBRA can cover that gap, and because coverage is retroactive, some people wait to see whether they need care before paying. That only works if you elect within the 60-day window and pay every premium back to the day your old plan ended.
Once your new employer's coverage starts, your COBRA can end. Tell the COBRA administrator so you are not billed for months you no longer need.
If you have a health savings account, you can use it to pay COBRA premiums tax-free, even after you leave the job.
Yes. Federal COBRA applies when employment ends for any reason other than gross misconduct, so quitting qualifies the same way a layoff does. Your employer must have 20 or more employees; smaller employers may be covered by state continuation law.
It depends on the plan. Many plans cover you through the end of the month you leave, and others end coverage on your last day of work. Ask HR before you give notice so you can time your last day.
At least 60 days, counted from the later of the date you receive the election notice or the date your coverage ends. If you elect in time, coverage is retroactive to the day your plan ended.
Yes. Losing job-based coverage opens a Special Enrollment Period that runs from 60 days before to 60 days after the loss of coverage, whether you quit or were let go. Voluntarily quitting does not change that.
It depends mostly on income. COBRA averages about $793 a month for one person and has no government help. A Marketplace plan can cost far less if your household income qualifies for premium tax credits, but it means a new network and a new deductible.
Yes. COBRA premiums count as a qualified medical expense for a health savings account, so you can pay them from your HSA tax-free after you leave the job.
No. Being fired also qualifies for COBRA unless it was for gross misconduct, which is rare and narrowly defined. Quitting, layoffs, and most firings are treated the same.
Prefer to talk? Call (888) 918-4516 · Monday to Friday, 10:00 a.m. to 5:30 p.m. Eastern
This website provides educational information about health insurance and is a solicitation for insurance. It is a non-government website operated by Prodest Insurance Group, a health insurance agency that presents health plans, which may include Affordable Care Act (ACA) plans, private health insurance, short-term medical insurance, or supplemental insurance based on the consumer's selection. Qualified ACA plans must meet or exceed the essential benefit requirements of the Affordable Care Act; non-ACA plans are not required to provide all of the essential benefit requirements contained in the Affordable Care Act. Pre-existing condition provisions, benefit availability, limitations and exclusions vary by plan type and state. You should review all plan details and product brochures before purchase. To qualify for ACA health insurance coverage outside of the open enrollment period, you must meet special enrollment requirements.
*Eligibility for Affordable Care Act (ACA) Advance Premium Tax Credit (APTC) and cost-sharing reductions is based on annual federal income thresholds, household size, and plan availability within the applicable service area. Premium rates, plan availability, and subsidy amounts vary by state and marketplace. Final eligibility and premium obligations are determined by the Health Insurance Marketplace under Internal Revenue Code Section 36B and applicable federal regulations.
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