COBRA

A law that lets you keep your employer health plan for a while after leaving a job — you just pay the full (often eye-watering) premium.

COBRA is a federal law that lets you keep your employer’s health plan for a limited time after you’d otherwise lose it — usually after leaving a job or a reduction in hours.

The coverage is identical to what you had, which is its appeal. The catch is the cost: you pay the full premium, including the share your employer used to cover, plus a small administrative fee — so a plan that felt cheap through payroll can be startlingly expensive.

It’s a valuable bridge, but always compare it against a Marketplace plan (losing job coverage triggers a special enrollment period), where subsidies can make similar coverage much cheaper.

This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.