When a job ends unexpectedly, the fear of losing your health insurance can hit hard. If you’re recently laid off or facing a major life transition, understanding COBRA health insurance can help you avoid gaps in your medical coverage.
This guide explains how COBRA works, what it covers, how much it costs, and how you can make the best decision for your family—especially if you’re in Frisco or nearby.
What Is COBRA Health Insurance?
COBRA stands for the Consolidated Omnibus Budget Reconciliation Act, a federal law that gives certain employees and their families the right to continue employer-sponsored health insurance after losing their job or experiencing other qualifying events.
Key Features of COBRA:
- Temporary continuation of your group health plan
- Covers the same benefits you had before leaving
- Typically lasts 18 to 36 months, depending on the situation
- You pay the entire premium (employer + employee portion) plus a 2% admin fee
Who Qualifies for COBRA?
You’re eligible for COBRA if:
- Your employer had 20 or more employees
- You were enrolled in the health plan before the qualifying event
- You lost coverage due to job loss (voluntary or involuntary), reduction in work hours, divorce, death, or dependent aging out
Example:
If you were working full-time and got laid off in Frisco, your employer is required to offer you COBRA coverage for up to 18 months. You’ll receive a notice within 14 days with details on how to enroll.
How Long Does COBRA Coverage Last?
COBRA coverage length depends on your qualifying event:
| Qualifying Event | COBRA Duration |
|---|---|
| Job loss or reduced hours | 18 months |
| Disability extension | Up to 29 months |
| Death, divorce, or Medicare | Up to 36 months |
You must elect COBRA within 60 days of receiving the notice, or you lose the right to continue coverage.
What Does COBRA Health Insurance Cover?
You get the same plan you had while employed. That includes:
- Doctor visits
- Emergency care
- Prescription drugs
- Mental health services
- Specialist visits
- Maternity care
The only difference? Now you pay the full cost.
How Much Does COBRA Cost?
COBRA can be expensive—you pay both your share and your employer’s share of the premium.
Average Monthly Premiums:
- Individual: $400 – $700+
- Family: $1,200 – $2,000+
Let’s say your employer paid 70% of your $1,500 family plan. Under COBRA, you’ll now pay $1,500 + 2% admin fee = $1,530/month out of pocket.
Pros and Cons of COBRA
✅ Pros:
- No gap in coverage
- Same network and providers
- Covers pre-existing conditions
- Gives time to explore alternatives
❌ Cons:
- High cost
- Temporary solution
- Must act within 60 days
COBRA vs. Marketplace Plans
Let’s compare COBRA to ACA Marketplace plans available on HealthCare.gov.
| Feature | COBRA | Marketplace |
|---|---|---|
| Cost | Higher (no subsidies) | Lower (with subsidies) |
| Enrollment Timeframe | 60 days after job loss | 60 days (Special Enrollment) |
| Network | Same as employer plan | May vary by provider |
| Duration | 18–36 months | Ongoing |
Local Tip: COBRA and Frisco health insurance
If you’re based in Frisco, it’s wise to review local Marketplace options before committing to COBRA. You may find a better, more affordable plan tailored to your family’s needs.
Talk to a Frisco health insurance agent who can walk you through both COBRA and individual plan comparisons.
When to Consider COBRA
You might choose COBRA if:
- You’re undergoing ongoing treatment or have specific doctors
- You have met your deductible for the year
- You’re close to enrolling in Medicare
- You want short-term stability while job hunting
However, if you want to reduce costs and are healthy, explore alternatives like short-term plans, ACA options, or spousal coverage.
How to Enroll in COBRA
- Wait for your employer or plan administrator to send the COBRA notice.
- Review the election form carefully.
- You have 60 days to accept coverage.
- Once enrolled, pay premiums retroactively to the date coverage was lost.
- Stay current with payments to avoid cancellation.
Need help navigating? Connect with a health insurance Frisco professional to simplify the process.
Conclusion
COBRA health insurance can be a lifesaver after job loss, helping you stay protected while you figure out your next steps. But it’s not always the most affordable or long-term solution.
Take time to compare COBRA with other options. Reach out to a trusted Frisco health insurance expert who can offer guidance based on your situation.
👉 Have you ever used COBRA coverage or considered it? What was your experience like? Share your thoughts below!
Frequently Asked Questions (FAQs)
1. How soon does COBRA coverage begin?
COBRA coverage starts retroactively from the date your employer-sponsored plan ended, as long as you enroll within the 60-day window.
2. Can I get COBRA if I quit my job voluntarily?
Yes. Whether you quit or were laid off, you’re still eligible for COBRA as long as your employer meets the requirements.
3. Are there subsidies for COBRA?
Generally, no. However, temporary government relief (like during COVID-19) may sometimes cover COBRA costs. Check for current programs.
4. Can I cancel COBRA once I enroll?
Yes. You can cancel at any time and switch to another plan, such as through the ACA Marketplace, if eligible.
5. Can my spouse and children be covered under COBRA?
Absolutely. Dependents covered under your previous plan are also eligible to continue coverage through COBRA.