COBRA in Montana

Montana has no state continuation law for people who leave a job. What it has instead is a guaranteed right to convert your group coverage to a policy of your own, with no health questions, if you apply within 31 days.

Reviewed by Prodest Insurance Group, a licensed insurance agency (NPN 19515569) · Updated 20 October 2026 against the Montana Code Annotated and federal sources.

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No Continuation After Job Loss

If your former employer had twenty or more employees, federal COBRA applies. Below that size, Montana law does not give you a right to stay on the group plan after your employment ends.

The one continuation rule is for reduced hours

Section 33-22-507 lets you stay on the group plan for up to a year if your hours are cut below the level needed to qualify, but only while you are still employed and only with your employer's consent. You pay the same premium as other members of your risk class.

It does not apply once your employment ends.

Federal COBRA Compared With Montana Conversion

	Federal COBRA	Montana conversion
Who it reaches	Employers with 20 or more employees	Insured group policies of any size
What you get	The same group plan	A policy of your own, issued without evidence of insurability
Prior coverage needed	None	Three months insured
Time to apply	60 days	31 days, with the first premium
What you pay	Up to 102 percent of the full premium	Up to 200 percent of the customary rate; up to 150 percent if insured more than three years
If the employer closes or drops the plan	Coverage ends	Conversion is still available

Federal COBRA covers employers with twenty or more employees whether the plan is insured or self-funded, and it works in Montana exactly as it does everywhere else.

How the Conversion Right Works

Section 33-22-508 applies when your coverage ends because your employment or group membership ends, because your employer goes out of business, or because your employer drops the group policy without replacing it. If you have been insured for three months and are not covered under another major medical plan, the insurer must issue you coverage without evidence of insurability.

You must apply and pay the first premium within 31 days of the group coverage ending. The insurer must offer a conversion policy with the same schedule of benefits as the plan that ended. It must also make available a basic option, at least at the level of its lowest-cost basic health plan, priced at no more than 150 percent of that plan's highest rate. Either way, coverage starts with no break after the group plan ends.

The same conversion right extends to a surviving spouse and children after the employee's death, to a spouse who stops qualifying under the plan, and to a child who ages off it.

Conversion premiums can be high. Compare any conversion quote with a Marketplace plan before choosing, because Marketplace plans may qualify for tax credits and conversion policies do not.

How Much Does COBRA Cost in Montana?

Federal COBRA lets a plan charge up to 102 percent of the full premium: everything your employer was paying, everything you were paying, plus two percent. Based on Montana's average employer premium in 2025, that works out to about $756 a month for single coverage and $1,869 a month for family coverage. That is close to the U.S. average of $767 a month for single coverage.

	Single coverage	Family coverage
Average full annual premium in Montana	$8,899	$21,989
Estimated COBRA cost per month (102%)	$756	$1,869

Estimate = average total employer premium in Montana × 1.02 ÷ 12, from the federal Medical Expenditure Panel Survey (2025). These are averages. Your exact premium depends on your former employer's plan and is listed on your COBRA election notice. If you are on state continuation instead of federal COBRA, the premium rules described on this page apply.

Compare COBRA costs in every state →
Estimate your own premium with the COBRA cost calculator →
Nearby states: Idaho · North Dakota · South Dakota · Wyoming

Health Insurance After Job Loss in Montana

Montana expanded Medicaid, so adults under 65 with household income up to 138 percent of the federal poverty level may qualify. Federal law passed in 2025 adds work and community engagement requirements for expansion adults from January 2027.

A spouse or parent's plan. Losing your own coverage usually opens a window to join a family member's employer plan, and that window can be as short as 30 days. Ask early.

Short-term coverage, with care. A short-term plan can bridge a gap, but it is not comprehensive, it can exclude pre-existing conditions, and it does not count as minimum essential coverage. COBRA vs. short-term health insurance →

Common Questions

How much is COBRA insurance in Montana?

About $756 a month for single coverage and $1,869 a month for family coverage, based on Montana's 2025 average employer premium plus the 2 percent administrative fee federal COBRA allows. Your actual premium depends on your former employer's plan and appears on your COBRA election notice.

What are my health insurance options after losing my job in Montana?

Montana uses the federal Health Insurance Marketplace at HealthCare.gov. Losing job-based coverage opens a 60-day Special Enrollment Period, and you can enrol up to 60 days before coverage ends so a new plan starts as the old one stops. Montana expanded Medicaid, so adults under 65 with household income up to 138 percent of the federal poverty level may qualify. Federal law passed in 2025 adds work and community engagement requirements for expansion adults from January 2027.

Does Montana have mini-COBRA?

No continuation after job loss. What Montana has instead is a guaranteed right to convert to a policy of your own.

How does the conversion right work?

If you were insured for three months and are not covered by another major medical plan, the insurer must issue coverage without health questions if you apply and pay within 31 days.

How much does a conversion policy cost?

Up to 200 percent of the customary rate, or up to 150 percent if you were insured more than three years.

What if my hours are cut?

You can stay on the group plan for up to a year while still employed, with your employer's consent.

Did Montana expand Medicaid?

Yes. Adults under 65 with household income up to 138 percent of the federal poverty level may qualify.

Sources

Drawn from the Montana Code Annotated as published by the Montana Legislature, and federal sources. Your plan documents and the terms your carrier provides govern your specific situation.

Montana Code Annotated, Section 33-22-508, Conversion on termination of eligibility
Montana Code Annotated, Section 33-22-507, Continuing group coverage after reduction of work schedule
Montana Code Annotated, Section 33-22-510, Insured's family conversion entitlement
U.S. Department of Labor, FAQs on COBRA Continuation Health Coverage for Workers
HealthCare.gov, Special Enrollment Period (glossary)
Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey Insurance Component, 2025

Conversion or the Marketplace?

A licensed agent can confirm whether federal COBRA applies to you, compare a conversion quote with Marketplace plans, and work out your deadlines. No charge, no obligation.