GLOSSARY · INSURANCE
COBRA continuation coverage
The right to keep an employer's group health plan after leaving a job, usually for up to 18 months, by paying the full premium plus up to a 2% administrative charge. You have 60 days to elect it, and coverage is retroactive to the date the old cover ended. Losing job-based coverage also opens a 60-day window to enroll in a marketplace plan instead.
Also called: COBRA, continuation coverage, keep my health insurance after layoff
FORMULA
COBRA monthly cost = full plan premium × up to 1.02
COMPUTE IT WITH YOUR NUMBERS
LEARN IT PROPERLY
CHAPTER · SECURITY & CRISIS RECOVERY · STRATEGIESJob Loss: The First 60 DaysCHAPTER · THE LONG GAME: GREEN CARD, RETIREMENT OR LEAVING · DEEP DIVEA Runway If the Job EndsRELATED TERMS
SOURCES
- An Employee's Guide to Health Benefits Under COBRA. U.S. Department of Labor, Employee Benefits Security Administration.
- HealthCare.gov. Centers for Medicare & Medicaid Services.