What is COBRA?
Insurance glossary entry on BeCovered.ai for the term "COBRA": Federal continuation coverage letting eligible employees keep group health benefits after qualifying events. Scope: plain-language meaning for coverage discussions; confirm definitions on your policy forms.
Federal continuation coverage letting eligible employees keep group health benefits after qualifying events.
Understanding COBRA
COBRA can preserve network and deductibles met mid-year but is often expensive because the member pays the full premium plus admin fee. Timely election and payment are strict.
Examples
- Job loss triggers 60-day COBRA election window.
- Divorce from covered spouse creates COBRA eligibility for ex-spouse.
Common Questions About COBRA
How long does COBRA last?
Commonly 18 months for termination; certain events extend to 29 or 36 months. State mini-COBRA may apply after federal ends.
Is COBRA better than marketplace coverage?
Compare net premiums after subsidies, deductibles reset, and provider networks. COBRA may win if mid-year met deductible.
Related Insurance Types
Related Terms
Premium
The amount you pay to your insurance company for your coverage, typically monthly or annually.
Waiting Period
The time between when a policy starts and when certain coverages become effective.
Exclusion
Specific situations, conditions, or types of damage that your insurance policy does not cover.
Claim
A formal request to your insurance company for payment or coverage for a loss or policy event.