What Is COBRA Insurance?

COBRA (Consolidated Omnibus Budget Reconciliation Act) insurance allows individuals to temporarily continue their employer-sponsored health coverage after losing their job, experiencing reduced work hours, or facing other qualifying life events. While it provides the same benefits as an employer’s health plan, the individual must pay the full premium, often making it expensive.

Who qualifies for COBRA?

• Employees who lose their job: Coverage is available after voluntary or involuntary job loss (except for gross misconduct).
• Spouses and dependents: Family members can remain covered if the employee loses their job, divorces, or passes away.
• Employees with reduced work hours: COBRA applies if hours are cut below the employer’s requirement for health benefits.

How long does COBRA last?

• Up to 18 months for job loss or reduced hours.
• Up to 36 months for dependents in certain cases, such as divorce or death of the covered employee.

How Solace can help

Deciding whether to continue COBRA or transition to another plan can be overwhelming, especially when managing ongoing medical needs. A Solace advocate can help you compare COBRA with other coverage options, such as ACA plans or Medicare, if you’re eligible. For those approaching Medicare eligibility, they can also help ensure a smooth transition so there are no gaps in coverage. If you’re struggling with COBRA’s high costs, they can identify financial assistance programs or alternative coverage.

What to do next

Not sure if COBRA is the right option for you? A Solace advocate can help you explore all your healthcare choices. Find an advocate today.