Last reviewed: 3 October 2026
Home › Agent guides › COBRA continuation coverage
COBRA continuation coverage: what the law and HealthCare.gov say
The short answer: federal law says most group health plans must let a "qualified beneficiary" who would lose coverage after a "qualifying event" elect to continue it, but plans where all employers normally had fewer than 20 employees are excepted.[1] HealthCare.gov says COBRA is optional and that you can compare it with Marketplace, Medicaid or CHIP, each with its own timing.[2]
The short version
- COBRA continuation coverage can let you temporarily keep a former employer's group health plan after you lose job-based coverage.[2]
- Federal law says the plan must offer this to a "qualified beneficiary" who would lose coverage because of a "qualifying event," but not every plan has to.[1]
- You do not have to enroll. HealthCare.gov says to compare COBRA with Marketplace plans first.[2]
- The deadlines that matter most on HealthCare.gov are 60 days to enroll in a Marketplace plan after losing job-based coverage. If you are eligible, you can enroll in Medicaid or CHIP at any time.[2]
What the law says
The federal statute we read is 29 U.S.C. § 1161, on continuation coverage under group health plans. Its text does not use the name COBRA; that name comes from the HealthCare.gov page. It says the plan sponsor of each group health plan must provide that each "qualified beneficiary" who would lose coverage because of a "qualifying event" may choose, within an "election period," to continue coverage under the plan.[1] In plain terms, a qualified beneficiary is a person the law entitles to elect this coverage. The statute defines "qualified beneficiary," "qualifying event" and "election period" in other sections, which we did not read. So this page does not say who qualifies, what events count, or how long you have to elect.
There is one exception. The rule does not apply to a group health plan for a calendar year if all employers maintaining the plan normally employed fewer than 20 employees on a typical business day during the preceding calendar year.[1]
What HealthCare.gov says about COBRA and its alternatives
HealthCare.gov says that when you lose job-based coverage, your former employer may offer COBRA continuation coverage, which may let you temporarily keep health coverage until you get other coverage, such as through a new job.[2] It says you do not have to enroll in COBRA and can compare the cost of COBRA with Marketplace plans before you decide.[2]
| Option | What HealthCare.gov says about timing |
|---|---|
| COBRA | Offered by your former employer. It may let you temporarily keep coverage.[2] |
| Marketplace plan | You can enroll within 60 days of losing job-based coverage. During Open Enrollment (November 1 to January 15 each year) you can enroll regardless of why you are ending COBRA.[2] |
| Medicaid or CHIP | If you are eligible, you can enroll any time, and coverage can start immediately.[2] |
Medicaid is a joint federal and state program that provides free or low-cost coverage to some low-income people. CHIP, the Children's Health Insurance Program, covers children and pregnant women in families that earn too much for Medicaid.[2]
Switching away from COBRA
HealthCare.gov says that outside Open Enrollment you can switch from COBRA to a Marketplace plan if your COBRA coverage is running out, or if you must pay the full cost of COBRA because your former employer stops contributing or you lose a government subsidy such as COBRA premium assistance, and it is still within 60 days of when you lost job-based coverage.[2] It says that if you choose to end COBRA early, you will have to wait until the next Open Enrollment to get Marketplace coverage, unless you have another life event such as marriage, a new baby or dependent, a move, or loss of health coverage.[2]
When COBRA coverage ends, HealthCare.gov says you have 60 days to enroll in a Marketplace plan through a Special Enrollment Period. A Special Enrollment Period is a time outside Open Enrollment when you can enroll in or change Marketplace plans. It applies when COBRA expires or is no longer available, not when you cancel it voluntarily before it ends.[2] If you leave COBRA before 18 months, the page says that losing coverage involuntarily, such as when your employer stops coverage or you lose eligibility, qualifies you. Dropping COBRA voluntarily does not, and neither does stopping your COBRA premium payments on your own.[2]
The page also says to check your coverage start date before you end COBRA. If you may be eligible for Medicaid or CHIP, it says to wait for a final eligibility decision before ending COBRA.[2] It adds that Marketplace plans may cost less than COBRA, especially if you qualify for savings based on your income.[2] Whether that is true for you depends on your own prices and eligibility, which this page cannot know.
How to verify this yourself
Read the statute text and the HealthCare.gov page listed below. HealthCare.gov points to the U.S. Department of Labor for more on COBRA and lists a helpline, 1-800-318-2596.[2] For your own situation, HealthCare.gov points to the Marketplace for plan prices and for finding out whether you qualify for Medicaid or CHIP. Dates and eligibility rules change, so check the pages' current wording.
What this page does not cover
We did not read the parts of the law or agency guidance that set who qualifies, how long you have to elect, how long coverage lasts, or what COBRA may cost. We do not cover state continuation laws. Neither source here addresses them. This is general information, not legal, insurance or medical advice, and it does not tell you which option to pick. For your own case, ask your former employer's plan administrator, the Department of Labor, or HealthCare.gov.
Your next step
Find your COBRA notice and note every date on it. Then compare it with Marketplace prices before the 60-day window closes. If you may qualify for Medicaid or CHIP, apply before you cancel anything. Our guide to ACA enrollment periods explains Special Enrollment Periods in more detail.
Related checks
Our standard explains how we check an agent's license and disciplinary history. Check an agent reports our findings at category level, as a method and not a verdict. Neither reviews any insurer, plan or product. To confirm the person selling you coverage is licensed, see how to check an agent's license. More plain-language guides are in the agent guides.
When we will update this page
We re-read the sources when they change. If something here is out of date, tell us. Corrections are dated on the page.
References
- [1] Legal Information Institute (Cornell), 29 U.S.C. § 1161, Plans must provide continuation coverage to certain individuals (unofficial text), read 3 October 2026 — www.law.cornell.edu/uscode/text/29/1161
- [2] HealthCare.gov (U.S. Centers for Medicare & Medicaid Services), "COBRA coverage when you're unemployed", read 3 October 2026 — healthcare.gov/unemployed/cobra-coverage/
What you can do next
- Check an agent's license yourself, step by step
- Check an agent (United States agents and brokers only) — see which ones we have checked
- See how we check — the rules and sources behind each result
- Report an error or request a correction
- Browse all agent guides