COBRA in New Jersey

New Jersey's continuation law is one of the closest to federal COBRA. Small employers must offer 18 months, spouses and children can have up to 36, and the premium is capped at 102 percent. The election window is shorter, though: 30 days.

Reviewed by Prodest Insurance Group, a licensed insurance agency (NPN 19515569) · Updated 20 October 2026 against the New Jersey Statutes, Department of Banking and Insurance guidance, and federal sources.

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Near-Federal Protection for Small Employers

Section 17B:27A-27 of the New Jersey Statutes requires small employer health plans to offer continued coverage to employees who leave for any reason other than cause, and to employees whose hours are cut to fewer than 25 a week.

Which employers it covers

The Department of Banking and Insurance applies the law to New Jersey small employers with 2 to 50 eligible employees that buy a New Jersey health plan, unless the employer is subject to federal COBRA.

In practice that usually means employers with fewer than twenty employees, since federal COBRA covers most employers above that size.

New Jersey Continuation Compared With Federal COBRA

	Federal COBRA	New Jersey continuation
Who it reaches	Employers with 20 or more employees	Small employers (2 to 50) not subject to COBRA
Why you left	Any reason except gross misconduct	Any reason other than for cause, or hours cut below 25 a week
How long	18 months, up to 36 for some events	18 months; 29 with a disability; 36 for spouses and children after a death, divorce, or ageing off
Time to elect	60 days	30 days, in writing
First payment	45 days after electing	Not due before 30 days after electing
What you pay	Up to 102 percent of the full premium	Up to 102 percent; up to 150 percent during a disability extension
If the employer drops coverage	Coverage ends	Coverage ends

Continued coverage must be identical to what similarly situated employees have, and cannot depend on proof of good health.

Spouses, Children, and Disability

Spouses and dependent children who were covered the day before the qualifying event can elect continuation in their own right. After the employee's death, a divorce, or a child ceasing to be a dependent, their coverage can run for up to thirty-six months.

An employee determined disabled by Social Security at termination, or during the first sixty days of continuation, can keep coverage for up to twenty-nine months. The Social Security determination must be reported to the carrier within sixty days of the determination.

When It Ends Early

Continuation stops if the employer stops providing any health plan, if a premium is not paid within 30 days of its due date, or if you become covered under another health plan without a pre-existing condition limitation or become entitled to Medicare.

How Much Does COBRA Cost in New Jersey?

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 New Jersey's average employer premium in 2025, that works out to about $828 a month for single coverage and $2,522 a month for family coverage. That is about $61 a month more than the U.S. average of $767 for single coverage.

	Single coverage	Family coverage
Average full annual premium in New Jersey	$9,743	$29,666
Estimated COBRA cost per month (102%)	$828	$2,522

Estimate = average total employer premium in New Jersey × 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.

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Nearby states: Delaware · New York · Pennsylvania

Health Insurance After Job Loss in New Jersey

New Jersey runs its own marketplace, Get Covered New Jersey, rather than using HealthCare.gov. Losing job-based coverage opens a 60-day Special Enrollment Period.

Get Covered New Jersey adds a state subsidy, New Jersey Health Plan Savings, on top of federal premium tax credits, for households with income up to 600 percent of the federal poverty level. That can change the comparison with continuation considerably.

New Jersey expanded Medicaid through NJ FamilyCare, and you can apply at any time of year.

New Jersey also has its own individual mandate. Residents without coverage who do not qualify for an exemption can owe a shared responsibility payment on their state tax return, which is one more reason not to let a gap run on.

Common Questions

How much is COBRA insurance in New Jersey?

About $828 a month for single coverage and $2,522 a month for family coverage, based on New Jersey'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 New Jersey?

New Jersey runs its own marketplace, Get Covered New Jersey, rather than using HealthCare.gov. Losing job-based coverage opens a 60-day Special Enrollment Period. Get Covered New Jersey adds a state subsidy, New Jersey Health Plan Savings, on top of federal premium tax credits, for households with income up to 600 percent of the federal poverty level. That can change the comparison with continuation considerably. New Jersey expanded Medicaid through NJ FamilyCare, and you can apply at any time of year.

Which employers does New Jersey continuation cover?

Small employers with 2 to 50 eligible employees that buy a New Jersey health plan, unless the employer is subject to federal COBRA.

How long does New Jersey continuation last?

18 months, 29 months with a disability, and 36 months for spouses and children after a death, a divorce, or a child ceasing to be a dependent.

How long do I have to elect?

30 days, in writing.

How much does it cost?

Up to 102 percent, or up to 150 percent during a disability extension.

Can I qualify if my hours were cut?

Yes. It covers employees whose hours are cut to fewer than 25 a week, as well as those who leave for any reason other than cause.

What is New Jersey Health Plan Savings?

A state subsidy on Get Covered New Jersey, added on top of federal premium tax credits, for households with income up to 600 percent of the federal poverty level.

Does New Jersey have an individual mandate?

Yes. Residents without coverage who do not qualify for an exemption can owe a shared responsibility payment on their state tax return.

Sources

Drawn from the New Jersey Statutes, New Jersey Department of Banking and Insurance guidance, and state and federal sources. Your plan documents and the terms your carrier provides govern your specific situation.

New Jersey Statutes, Section 17B:27A-27, Continued coverage for certain terminated employees and dependents
New Jersey Department of Banking and Insurance, Advisory Bulletin 07-SEH-02, State Continuation of Coverage (PDF)
State of New Jersey, Get Covered New Jersey: NJ FamilyCare
U.S. Department of Labor, FAQs on COBRA Continuation Health Coverage for Workers
Agency for Healthcare Research and Quality, Medical Expenditure Panel Survey Insurance Component, 2025

Thirty days to elect

A licensed agent can confirm whether New Jersey continuation or federal COBRA applies to you, and price Get Covered New Jersey plans with the state subsidy alongside it. No charge, no obligation.