COBRA covers employers with 20+ employees for 18-36 months; smaller companies fall to state continuation laws, and some states have no continuation at all — the coverage gap is decided by employer size and state.
The COBRA Rules
- Election window: 60 days from coverage end; premiums run 102-105% of group cost (full subsidy rare). Retroactive coverage if elected late; one month of bills can be recovered.
- Qualifying events: termination, reduced hours, death, divorce, loss of dependent coverage; disability extends to 29 months (see the SSDI guide).
- State continuation: CA, NY, NJ, and others add small-business continuation with child/dependent options; the state list lives at benefits.gov.
The Premium Math
COBRA premiums vs ACA marketplace subsidies: a mid-year income drop usually wins the marketplace comparison (see the marketplace guide). The layoff cash order is in the 30-day plan, and open enrollment rules in the enrollment guide. The exit checklist covers the 60-day clock in the exit checklist.
Put the rule into action
Write the letter with the free COBRA Election Notice Letter generator. The state pages carry the local payout and notice windows, and the application tracker keeps the follow-up date in writing.
Put the rule into action
Which law covers your plan
COBRA is federal and reaches employers with 20 or more employees: you keep the group plan for up to 18 months at up to 102% of the group premium, elect within 60 days of coverage ending or of receiving the election notice, and coverage can be retroactive. Family coverage continues on the same terms after divorce, death, or a child aging out.
If your employer is smaller, self-insured, or state-regulated, you are likely under state continuation law instead. Some states run past 18 months, add dental and vision, or cap the premium. The federal election window does not automatically apply to a state-only plan, and missing a state deadline is usually final for the year.
Ask one question in writing before you elect: which law governs my plan? The state continuation entry explains the difference and the COBRA entry covers the federal ceiling and the window.
The three dates and the two numbers
- Coverage end date: the date group coverage stops, which is not always your last working day.
- Election notice date: the 60-day window can run from the notice instead, whichever is later.
- Deadline date: write it on a calendar the day you get the notice.
- Monthly premium, shown as group rate plus the 2% administration allowance separately.
- Marketplace quote for the same months, with the subsidy computed from projected income.
Run both totals in the COBRA cost calculator before electing. The subsidy is the reason a marketplace plan frequently beats COBRA after a layoff, and both windows are 60 days, so the comparison has to happen inside the same period. See COBRA versus the ACA marketplace and the special enrollment entry.
Traps that cost coverage
- Waive now, elect later: waiving can close the door for the same qualifying event.
- Miss a premium: coverage can end retroactively and unwind a claim already processed.
- Assume the employer's number is the total: ask for the group rate and the allowance as separate lines, or you cannot compare to a marketplace quote.
- Small-employer plans under federal rules: the state window governs, and it is often shorter.
- Open enrollment confusion: switching to a marketplace plan mid-term usually waits for a qualifying event or open enrollment; see the open enrollment entry.
Write the election with the COBRA election notice generator, which puts the coverage end date, the quoted premium and the deadline in one dated letter.
Scripts and wording
"My coverage ends [date]. Please confirm in writing which law governs my plan (federal COBRA or state continuation), the election deadline, the monthly premium with the group rate and the 2% allowance shown separately, and whether dental and vision are included in the quote. I will compare this against a marketplace quote before electing."
Ask for the breakdown and the governing law in the same letter. A total without the allowance line cannot be compared, and an election made under the wrong window can be the difference between coverage and a gap until January.
COBRA versus state continuation
| Plan | Who is covered | Length and cost |
|---|
| Federal COBRA | Employers with 20 or more employees | Up to 18 months, at up to 102% of the group premium |
|---|
| State continuation | Small and self-insured plans | State-set rules; length and cost vary |
|---|
| No continuation | Some states have no rule | Marketplace is the fallback |
|---|
For the current text behind these numbers, start with the California COBRA rule page and the New York COBRA rule page, along with the equity tax trails guide hub. Those sources state the rule in full; this page only points at them.
\n
Frequently Asked Questions
- How long does COBRA last?
- Up to 18 months for most qualifying events, at up to 102% of the group premium, with a 60-day election window measured from coverage ending or from the election notice. State continuation law can run longer, add dental and vision, or cap the premium. Read the COBRA entry and the state continuation entry.
- Is COBRA always the right choice?
- No. A marketplace plan with a subsidy computed from projected income is often cheaper, and losing employer coverage opens a 60-day special enrollment window as well. Compare both totals for the same months in the COBRA cost calculator before electing.
- My employer has 12 people. Am I covered?
- Not by federal COBRA, which reaches employers with 20+ employees. State continuation law covers small and self-insured plans, with its own deadline and term. Ask which law governs in writing, because missing the state window is usually final for the year.
- What happens if I stop paying the premium?
- Coverage can end retroactively, which can unwind a claim already processed and leave you paying the provider. Paying on time, and keeping the election confirmation, is the whole protection. The election letter generator creates the dated record of what you elected and when.
The election window, the coverage length, and the state continuation rule are three different clocks: federal COBRA runs 60 days from the date coverage ends and reaches 18 months, employers under 20 people often fall under state continuation law, and some states extend coverage past 18 months. The state side of that line is a state rule, graded from reported sources in this build, so confirm the current text with the state agency named on the state rule pages before you let a state deadline pass, and write the election with the COBRA election notice generator with the coverage end date on the page.