Benefits & Retirement

COBRA

Law allowing you to keep your employer health insurance for 18 months after leaving (at full cost).

Full Definition

COBRA (Consolidated Omnibus Budget Reconciliation Act) gives employees who lose their group health insurance the right to continue coverage for up to 18 months (36 months in some situations). The catch: you pay the FULL premium — your share PLUS your employer's share — plus a 2% administrative fee. This often makes COBRA very expensive ($600-$1,800/month). It's a bridge coverage option while transitioning between jobs.

Related Terms

Health Insurance Premiumterminationopen-enrollment

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