What are the benefits of using COBRA?
Asked by: Cade Beier | Last update: January 10, 2026Score: 4.5/5 (42 votes)
What is the main benefit of COBRA?
Federal COBRA is a federal law that lets you keep your group health plan when your job ends or your hours are cut. Federal COBRA requires continuation coverage be offered to covered employees, their spouses, former spouses, and dependent children.
Is COBRA coverage worth it?
Cobra plans usually have much lower deductibles and max out of pockets than individual plans... so even if premiums are higher... for an individual that has a high use of healthcare... cobra may actually be a better option.
What are the disadvantages of COBRA coverage?
- COBRA can be expensive, especially compared to the premiums you were paying before your qualifying event. ...
- COBRA does not apply to all employer-sponsored health plans—in particular, those organizations with fewer than 20 employees may have no requirements. ...
- Even if you get an extension, COBRA is only temporary.
What does COBRA do to you?
Cobra venom generally contains neurotoxins active against the nervous system of prey—primarily small vertebrates and other snakes. Bites, particularly from larger species, can be fatal depending on the amount of venom injected.
Everything you need to know about COBRA
What does COBRA allow you to do?
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. COBRA allows former employees, retirees, and their dependents to temporarily keep their health coverage. If you get COBRA, you must pay for the entire premium, including any portion that your employer may have paid in the past.
How much does COBRA cost?
COBRA insurance typically costs 102% of the total health plan premium. This includes both the employee and employer contributions, along with a 2% administrative fee.
What is not covered under COBRA?
COBRA also does not cover plans that provide only life insurance or disability benefits, as those benefits are not considered “medical care.”
What is the largest disadvantage of COBRA?
COBRA coverage is not cheap. Why? Because you're now responsible for paying your portion of your health insurance: The cost your employer contributed to your premium, in addition to the 2% service fee on the cost of your insurance.
Is COBRA cheaper than Obamacare?
COBRA costs an average of $599 per month. An Obamacare plan of similar quality costs $462 per month—but with the government subsidies available, the average cost of an Obamacare plan on HealthSherpa is less than $10 per month. But ultimately, it depends on your situation.
What is the 60 day COBRA loophole?
You have 60 days to enroll in COBRA once your employer-sponsored benefits end. Even if your enrollment is delayed, you will be covered by COBRA starting the day your prior coverage ended.
Does COBRA kick in immediately?
An employee eligible for COBRA insurance must opt for it within 60 days of their employer-sponsored insurance termination date. The coverage starts the day the previous coverage ends.
Why would anyone use COBRA?
The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods of time under certain circumstances such as voluntary or involuntary job loss, ...
Does COBRA cover surgery?
If there is coverage for your surgery on your previous employer's health plan, it will be covered under COBRA continuation.
What is special about COBRA?
They have specialized muscles and ribs in the neck that can flare out when the cobra feels threatened. Cobras are able to raise their body up, spread the hood, and hiss loudly to scare off most threats. The deep loud hiss of a large king cobra alone is enough to make one's hair stand up on end!
What are the downsides of Cobra insurance?
Cons of COBRA Health Insurance
Some of the most notable ones include the large cost of insurance when fully paid for by the employee, the brief COBRA coverage period, and the employee relying on the employer.
How do I calculate my COBRA payment?
Using the information provided in Box 12 of your most recent W-2 form, labeled Code DD, you will find the total annual cost of your employer-sponsored health coverage. To determine your monthly COBRA premium, divide this annual amount by 12 and include any applicable administrative fees, which may be up to 2%.
What percentage of people take COBRA?
Roughly 15 percent of UI beneficiaries received health insurance coverage via COBRA. Taking into account the main eligibility requirements for the ARRA subsidy, we estimate that between a quarter and a third of eligible unemployed workers enrolled in subsidized COBRA for continuing health insurance.
How do COBRA payments work?
Who pays for COBRA coverage? The employee generally pays the full cost of the insurance premiums. In fact, the law allows the employer to charge 102 percent of the premium, and to keep the 2 percent to cover your administrative costs.
How much is cobra insurance for a single person?
You should expect COBRA insurance costs to be substantially higher than what you paid as an employee because your employer is no longer required to pay a share. In 2023, employees paid an average of $145 per month for an individual plan and $548 per month for a family plan, according to KFF.
Why is COBRA so expensive?
Loss of Employer Subsidy: When you were employed, your employer likely subsidized a significant portion of your health insurance premium. However, with COBRA, the employer is no longer required to contribute to the premium, leaving you responsible for the full cost of the insurance, plus added administrative fees.
Is COBRA cheaper than marketplace?
Both COBRA and ACA Marketplace plans have their advantages. COBRA lets you keep your exact employer-based plan but is often more expensive. ACA plans may be more affordable, especially with subsidies, but require choosing a new plan. The best choice depends on your financial situation and healthcare needs.
How much does my employer pay for my health insurance?
In 2022, the average share employers contributed toward group health insurance premium costs was 73% for family coverage and 83% for single coverage. This equated to $16,357 annually for family coverage and $6,584 annually for single coverage per employee.
Can I use COBRA if I quit?
Whether you quit, get fired or are laid off, you may be able to choose your former employer's health plan under a federal law called COBRA. That stands for Consolidated Omnibus Reconciliation Act. It's available if: You were enrolled in an employer-sponsored medical, dental or vision plan.