COBRA
The 1985 law letting workers keep employer group health coverage after job loss or other qualifying events.
Overview
Continuation typically runs up to 18 months, or 36 for dependents in some cases. The catch is price: the former employee pays the full premium plus a 2 percent administrative fee, which can exceed 600 dollars monthly for single coverage and far more for a family, since the employer subsidy disappears. Coverage is identical to the group plan, preserving networks and continuity of care mid treatment. Election is optional, and alternatives such as marketplace plans with subsidies or a spouse plan can be cheaper. The decision window is 60 days, and comparing continuation to marketplace coverage is a standard severance planning step.
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