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Denied But Heard

Denied But Heard Laid off and offered COBRA? What to do first

Laid off and offered COBRA? Check this before you sign.

COBRA lets you keep your old job’s health plan, but you pay the full premium, including the share your employer used to pay, plus up to 2%. Losing job coverage also opens a 60-day window to buy a Marketplace plan, where help with the premium depends on your income, not on having a job. Compare both before you decide: dropping COBRA later on your own doesn’t reopen that window unless you have another qualifying life event.

Updated October 23, 2026. General information, not legal advice. Your policy, plan documents and state rules control.

The thousands-a-month “option.”

You lose your job. A week later a letter offers to keep your health insurance for thousands a month. That number isn’t a scam, it’s a reveal: it was always the real price, and your employer was quietly paying most of it.

  1. Shop the Marketplace first

    Losing job-based coverage lets you enroll in a Marketplace plan within 60 days before or after the coverage ends, outside open enrollment. Help with the premium depends on your household’s expected income for the year, not on whether you have a job, so a lower income can mean more help. Start at HealthCare.gov or your state’s marketplace.

  2. Check Medicaid if your income dropped a lot

    You can apply for Medicaid any time of year, not only during open enrollment. The Marketplace application checks for it too.

  3. Use your COBRA decision window

    You have at least 60 days to elect COBRA, counted from the later of the date on your election notice or the day your coverage ended, and at least 45 days after electing to make the first payment. Elect within that window and coverage generally reaches back to when your job coverage ended, so you owe the premiums from then. If you first turn COBRA down and then change your mind inside the window, coverage may start only from the day you change it. Know the catch: your Marketplace window counts from the day your job coverage ended, so it can close before your COBRA window does, and once you’re on COBRA, stopping payments on your own doesn’t open a new one. Make the Marketplace decision first.

  4. 65 or close to it? Don’t let COBRA replace Medicare

    COBRA doesn’t count as job-based coverage for Medicare, so it doesn’t give you extra time to sign up for Part B. Missing your window can mean a penalty for as long as you have Medicare. See signing up for Medicare.

  5. If you keep COBRA, don’t miss a payment

    Each monthly payment has at least a 30-day grace period. Paying late past that can end your COBRA for good. COBRA after a job loss usually lasts up to 18 months.

The “wait and see” trick. Some people wait to elect COBRA and pay only if they get sick during the 60 days. It can work, but missing a deadline ends your COBRA rights for good, and while you wait, your 60-day Marketplace window keeps running from the day your job coverage ended. If you try it, mark all three dates and read your election notice closely.

Sources, checked October 23, 2026: U.S. Department of Labor, Continuation of Health Coverage (COBRA); An Employee’s Guide to Health Benefits Under COBRA (PDF); HealthCare.gov, special enrollment periods; HealthCare.gov, COBRA coverage; on when elected coverage starts, the federal COBRA rule at 26 CFR 54.4980B-6. Rules can differ for small employers under state “mini-COBRA” laws and for government and church plans.

Quick answers

Why is COBRA so expensive?

Because you now pay the whole premium. Your employer was paying most of it while you worked there. COBRA can cost up to 102% of the plan’s full cost: the employee share, the employer share and a 2% administrative fee.

How long do I have to decide on COBRA?

At least 60 days to elect it, and at least 45 days after you elect it to make the first payment. After that, each monthly payment has at least a 30-day grace period.

Can I switch from COBRA to a Marketplace plan later?

Not just by stopping your COBRA payments. Choosing to stop paying on your own doesn’t open a special enrollment period. You can switch during open enrollment, when your COBRA runs out, if your former employer stops paying its share, or after another qualifying life event such as a move.

Can COBRA replace Medicare?

No. If you’re 65 or older, COBRA doesn’t count as job-based coverage for Medicare, so it doesn’t extend your Medicare sign-up window. Waiting can mean late penalties for as long as you have Medicare.

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