How you handle an employee’s departure says a lot about your company culture. When a team member resigns, they’ll have urgent questions about their benefits, and one of the first will likely be, can you get COBRA if you quit your job? Having a clear, correct answer is crucial. It’s part of a larger offboarding strategy that shows you support your team from start to finish. This guide will walk you through the essentials of COBRA eligibility and the notification process, so you can handle these conversations with confidence and ensure a positive, professional transition.

Key Takeaways

• Understand COBRA’s true cost before enrolling. COBRA lets you keep your exact same health plan after a job change, but you must pay 100% of the premium, plus a 2% administrative fee. This means your monthly cost will be significantly higher than what you paid as an employee.
• Act quickly to meet strict enrollment deadlines. You have a 60-day window to elect COBRA after losing coverage and another 45 days to make your first payment. Missing these deadlines means you forfeit your right to continue your health plan, so mark your calendar.
• Explore your alternatives to find a better deal. Losing job-based coverage qualifies you for a Special Enrollment Period, giving you 60 days to find a more affordable plan on the Washington Healthplanfinder, join a spouse’s plan, or get temporary short-term insurance.

What is COBRA Insurance, Anyway?

If you’re navigating a job change, you’ve probably heard the term “COBRA” thrown around. It can sound complicated, but at its core, it’s a safety net designed to help you and your family maintain health coverage during a transition. Think of it as a bridge that keeps you connected to your previous employer’s health plan for a limited time. Let’s break down what it is, who it’s for, and clear up some common confusion surrounding it.

What Does COBRA Actually Cover?

COBRA stands for the Consolidated Omnibus Budget Reconciliation Act. It’s a federal law that gives workers who lose their health benefits the right to continue their group health benefits for a limited period. This applies to events like job loss, a reduction in work hours, or other specific life events. Essentially, COBRA continuation coverage ensures you don’t have a sudden gap in your health insurance, which can be a huge relief when you’re already managing a major life change. It allows you to keep the exact same plan you had with your employer, including your network of doctors and prescription benefits.

Am I Eligible for COBRA?

Eligibility for COBRA isn’t automatic; you have to meet a few specific criteria. First, your former employer’s group health plan must be covered by COBRA—most plans at companies with 20 or more employees are. Second, a “qualifying event” must occur that would cause you to lose your health coverage. Finally, you must be a “qualified beneficiary,” which typically includes the covered employee, their spouse, and any dependent children. You must have been enrolled in your employer’s health plan on the day before the qualifying event happened to be eligible for continuation.

Who Is Covered Under COBRA?

So, who exactly gets to use this COBRA safety net? The law refers to these individuals as “qualified beneficiaries.” This group includes the employee who was covered under the health plan, as well as their spouse and any dependent children who were also on the plan. To be eligible, they must have been enrolled in your company’s health plan the day before the qualifying event happened. This event is typically a job loss—whether voluntary or involuntary, as long as it wasn’t for “gross misconduct”—or a reduction in work hours that leads to a loss of coverage. It’s a straightforward protection designed to ensure continuity of care for people during a significant life transition.

Coverage for Family Members

One of the most important things to understand about COBRA is that coverage isn’t an all-or-nothing deal for the family. Each qualified beneficiary has an independent right to elect COBRA. This means a spouse, former spouse, or dependent child can choose to continue their health coverage even if the former employee decides to waive it. For example, if an employee leaves for a new job with immediate benefits, but their family needs to stay on the old plan for a month, the family can elect COBRA on their own. This flexibility is a key feature, ensuring that everyone can make the best choice for their individual needs, as outlined in the official COBRA regulations.

Do You Have a Qualifying Life Event?

Several different situations can trigger COBRA eligibility. For employees, the most common qualifying events are voluntary or involuntary termination of employment (for reasons other than “gross misconduct”) and a reduction in your work hours that results in a loss of coverage. So, yes, you can absolutely get COBRA if you quit your job. For spouses and dependent children, qualifying events also include the covered employee’s death, divorce or legal separation, or the employee becoming entitled to Medicare. It’s designed to provide a buffer during these significant life transitions, giving you time to find a new long-term solution.

Retirement from Your Job

When an employee retires, it often marks the end of their access to your company’s group health plan. This transition is another qualifying event for COBRA. If retirement leads to a loss of health benefits, the former employee can choose to continue their coverage for a limited time. This ensures they have uninterrupted access to healthcare as they move into a new phase of life. To be eligible, the retiree must have been enrolled in your company’s health plan on the day before their retirement date. This provision offers a valuable safety net, giving them time to arrange for Medicare or another long-term health insurance solution without risking a coverage gap.

A Child Losing Dependent Status

It’s a common milestone: a dependent child on an employee’s health plan reaches the age limit, typically 26, and is no longer eligible for coverage. This loss of dependent status is a qualifying event that triggers COBRA eligibility for the child. It allows them to elect continuation coverage under the same plan, giving them a buffer as they transition to their own insurance. For this to apply, the child must have been covered under their parent’s plan the day before they lost their dependent status. This is a crucial piece of information to share with employees, as it helps ensure their young adult children can maintain health insurance while they establish their own careers.

Busting Common COBRA Myths

Let’s clear up a couple of common misunderstandings. First, COBRA isn’t an insurance company; it’s a law that lets you continue your existing plan. This means you’ll be paying the full premium yourself—both your share and your employer’s share—plus a small administrative fee (up to 2%). This is why COBRA often feels much more expensive than what you paid as an employee. Another myth is that a retirement health plan can replace COBRA. While some companies offer retiree health plans, they are separate from your COBRA rights, which are specifically for continuing your job-based insurance after losing it.

Can You Get COBRA If You Quit Your Job?

Leaving a job brings up a lot of questions, and one of the biggest is, “What happens to my health insurance?” If you’re considering quitting, you might be worried about a gap in coverage. The good news is that you likely have options. The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law that gives workers and their families who lose their health benefits the right to choose to continue group health benefits provided by their group health plan for limited periods. Understanding how it works is the first step to making a smooth transition.

Does It Matter if You Quit or Were Fired?

Let’s clear this up right away: Yes, you can get COBRA if you quit your job. The reason for your departure generally doesn’t affect your eligibility. Whether you resign to start a new venture, take a career break, or were part of a layoff, COBRA is designed to be a bridge for your health coverage. It allows you to maintain the same health plan you had with your former employer. The only major exception is if you were terminated for “gross misconduct,” which is a high bar and applies in very specific situations. For most people who leave a job voluntarily, COBRA remains a viable option.

What You Need to Qualify After Quitting

While quitting doesn’t disqualify you, there are a few boxes you need to check to be eligible for COBRA. First, you must have been enrolled in your employer’s health plan on the day you left, and that plan must still be active for the remaining employees. Second, your employer must be subject to COBRA laws, which typically means they have 20 or more employees. For business owners and HR managers, understanding these rules is essential for compliance and for properly guiding your departing team members. If you’re getting started with setting up benefits, these are key details to know.

When Does Your Previous Coverage End?

The timing of when your old plan stops is a critical detail to confirm with your HR department. Generally, your health insurance coverage ends on your last day of employment or at the end of the month in which you leave your job. The specific date depends entirely on your company’s policy. For example, if you resign on June 10th, your coverage might end that same day, or it could continue through June 30th. This distinction is important because it determines when your COBRA eligibility window officially begins, so make sure you have a clear answer before your departure.

Once your job-based coverage ends, a new timeline starts. You have a 60-day window, known as the election period, to decide whether to enroll in COBRA. If you choose to elect it, you have another 45 days to make your first premium payment. These deadlines are strict; missing them means you forfeit your right to continue your plan. This temporary COBRA coverage typically lasts for up to 18 months, giving you a safety net while you figure out your next move, whether that’s starting a new job or finding an individual plan.

How Long Does COBRA Coverage Last?

If you qualify for COBRA after leaving your job, you can typically continue your health coverage for up to 18 months. This 18-month period is the standard for qualifying events like voluntary or involuntary termination of employment. It’s designed to give you plenty of time to find a new job with benefits or explore other long-term insurance options without rushing. While certain other life events, like the death of a covered employee or divorce, can extend coverage to 36 months for dependents, the 18-month rule is the one to remember when you’re the one leaving the job.

What to Know About COBRA in Washington State

While federal COBRA law applies to companies with 20 or more employees, Washington State has its own continuation coverage laws. This is great news for employees of smaller businesses. Washington’s “mini-COBRA” law requires that employers with fewer than 20 employees offer a similar continuation of coverage. The rules and duration can differ slightly from federal COBRA, so it’s important to know which law applies to your situation. This state-level protection ensures that more workers have a safety net, which is especially important for the many small groups that form the backbone of our state’s economy.

What if Your Situation is Different?

There are a couple of important details to keep in mind. First, you don’t have to decide on COBRA immediately. After your employer-sponsored coverage ends, you have a 60-day election period to sign up. This gives you time to weigh your options without pressure, but be mindful of the deadline. Second, as mentioned earlier, you won’t be offered COBRA if you were fired for gross misconduct. This term isn’t always clearly defined but generally refers to serious offenses like theft or intentional harm to the company. For most standard departures, this won’t be a concern.

How Much Does COBRA Cost?

One of the biggest questions employees have about COBRA is the cost. Since the employer is no longer contributing to the premium, the individual is responsible for the full price of the health plan, plus a small administrative fee. This shift can lead to a significant increase in monthly expenses.

Generally, you can expect to pay 102% of the total premium—that’s the portion you were already paying, plus the portion your employer was covering, and a 2% fee for administrative costs. On average, this can range from $400 to $700 per person per month, but the exact amount depends entirely on the specific health plan. For example, a high-deductible plan will cost less than a premium plan with more extensive coverage. The U.S. Department of Labor provides detailed guidelines on COBRA continuation coverage that outlines these costs. As an employer, it’s helpful to provide departing employees with a clear breakdown of these potential expenses so they can make an informed decision about their healthcare.

Calculating Your Monthly COBRA Premium

To figure out the exact COBRA premium, you’ll need the total monthly cost of the health insurance plan you were enrolled in. The premium is the full price of the plan before any employer contributions were subtracted. For instance, if the total plan cost was $500 per month and your employer paid $350 while you paid $150, your COBRA premium would be the full $500 plus the 2% administrative fee, totaling $510 per month. It’s a straightforward calculation, but it highlights the value of an employer’s contribution. Remember, COBRA regulations typically apply to private-sector employers with 20 or more employees, so this is a key factor in determining eligibility.

When Are COBRA Payments Due?

Timing is critical when it comes to COBRA. After a qualifying event, the employee has a 60-day window to decide whether to enroll. This is known as the election period. Once they decide to continue coverage and submit their enrollment, they have another 45 days to make their first premium payment. Coverage is retroactive to the date their employer-sponsored plan ended, as long as that first payment is made on time. Subsequent monthly payments are typically due on the first of the month, with a 30-day grace period. Missing these deadlines can result in a permanent loss of coverage, so it’s essential to stay on top of the timeline.

Does COBRA Affect Your Taxes?

Many people wonder if they can write off their COBRA premiums on their taxes. The answer is usually no, unless you are able to itemize your medical deductions. To do this, your total medical expenses for the year—including premiums—must exceed 7.5% of your adjusted gross income (AGI). For most people, this threshold is hard to meet. Because the rules can be complex and depend on individual financial situations, it’s always a good idea to advise former employees to consult with a tax professional. This ensures they get accurate advice tailored to their circumstances without putting your company at risk of providing financial guidance.

Related: For more on this topic, see COBRA Retroactive Coverage Explained (Step-by-Step), How Long Can You Stay on COBRA? The Rules Explained, and COBRA Administration Fee: What It Is & Why It Matters.

Can You Get Help Paying for COBRA?

The high cost of COBRA can be a major barrier for many families. If a former employee finds the premiums unaffordable, there are other avenues for them to explore. Depending on their income and household size, they may qualify for free or low-cost coverage through state programs like Medicaid or the Children’s Health Insurance Program (CHIP). These programs are designed to provide a safety net for individuals and families who need it most. You can find more information about these options after losing job-based coverage on the official HealthCare.gov website, which is a great resource to share.

Where to Find Help in Washington State

For those living in our state, there are local resources that can provide clarity and support. The Washington Health Benefit Exchange is the official marketplace where individuals can compare and purchase health insurance plans. Losing employer-sponsored coverage is considered a qualifying life event, which means the former employee can enroll in a new plan outside of the standard open enrollment period. The exchange offers a range of plans at different price points and provides information on subsidies that may be available to lower costs, making it a valuable alternative to COBRA for many Washington residents.

U.S. Department of Labor Resources

The U.S. Department of Labor (DOL) is the definitive source for official information on COBRA, and it’s a great resource to share with departing employees. The DOL explains that COBRA is a federal law giving workers who lose their health benefits the right to continue their group plan for a limited time. This COBRA Continuation Coverage generally applies to companies with 20 or more employees. The DOL also highlights the strict timelines involved: employees have a 60-day window to elect COBRA after losing coverage and another 45 days to make their first payment. Missing these deadlines means forfeiting the right to continue the plan, so it’s crucial to communicate this clearly. Pointing your team to the DOL’s website ensures they get accurate, reliable information directly from the source.

How Do You Apply for COBRA?

Figuring out health insurance after leaving a job can feel overwhelming, but applying for COBRA is a straightforward process with clear, federally mandated steps. Your former employer is required to provide you with all the necessary information, so your main job is to watch for the paperwork, understand the deadlines, and make a decision that’s right for you. Think of it as a simple checklist to work through. Let’s walk through exactly what you need to do to get enrolled and keep your health coverage active.

How Long Do You Have to Enroll?

Once your employer-sponsored health plan ends, a 60-day countdown begins. This is your “election period,” and it’s the window you have to decide whether to sign up for COBRA. The great thing is that coverage is retroactive. So, even if you wait until day 59 to enroll, your COBRA coverage will backdate to the day you lost your original benefits, ensuring there are no gaps. This gives you some breathing room to explore other options without the fear of being uninsured. The U.S. Department of Labor outlines these timelines clearly, so you can be confident in the process.

Understanding the 60-Day “COBRA Loophole”

That 60-day election period creates a unique opportunity often called the “COBRA loophole.” This isn’t a loophole in the legal sense, but a strategic way to use the grace period. Here’s how it works: a former employee can hold off on enrolling in COBRA. If they stay healthy during those 60 days and find a new, more affordable plan, they can simply sign up for the new plan and avoid paying two months of expensive COBRA premiums. But if an unexpected medical event occurs—say, a trip to the emergency room on day 45—they can still elect COBRA. They would then pay the premiums retroactively, and their medical bills would be covered. This strategy provides a safety net, giving them time to find other coverage, like a plan on the Washington Healthplanfinder, without the risk of being uninsured for a major expense.

What Paperwork Do You Need to Apply?

You won’t have to hunt down the application forms yourself. Your former employer is legally required to send you a COBRA election notice, usually within 45 days of your last day of coverage. This packet is your complete guide—it will detail the plans available to you, how much the monthly premiums will cost, and include the forms you need to fill out to enroll. If you don’t see this packet in your mailbox after a few weeks, don’t hesitate to reach out to your old HR department to check on its status. Keep an eye out for this important document, as it officially kicks off your enrollment.

Your Step-by-Step Enrollment Guide

Once you receive your COBRA election notice, the steps are simple. First, carefully review the documents to understand your plan options and costs. Next, fill out the election form, making sure to select the plan you want and who you’re covering. You must send this form back to the plan administrator before your 60-day election period ends. After you’ve submitted the form, you’ll need to make your first premium payment. Once that’s paid, your coverage is active and backdated to when your old plan ended, so you can start using your benefits right away.

Don’t Miss These Key COBRA Deadlines

When it comes to COBRA, timing is everything. The most critical deadline is the 60-day election period to sign up for coverage, which starts from the date your health plan ended or the date you received your election notice, whichever is later. Once you’ve enrolled, you have another 45 days to make your first premium payment. After that, your monthly payments will have their own due dates. Missing these initial deadlines can mean forfeiting your right to COBRA entirely, so be sure to mark your calendar. It’s always better to act early to avoid any last-minute stress.

Keeping Your COBRA Coverage Active

Keeping your COBRA coverage active is as simple as paying your monthly premiums on time. Most plans offer a 30-day grace period for payments, but it’s always best to pay promptly to avoid any risk of cancellation. COBRA typically lasts for 18 months, though it can be extended up to 36 months in certain situations, such as disability. Your coverage will end if you stop paying premiums, or once you become eligible for another group health plan (like from a new job) or Medicare. If you have questions about your specific circumstances, it’s always a good idea to get expert guidance.

What Are Your Alternatives to COBRA?

COBRA is a great safety net, but it’s often the most expensive way to keep your health insurance. Since you’re responsible for paying the full premium—including the portion your employer used to cover—plus an administrative fee, the monthly cost can be a real shock. The good news is that you have other choices. Losing your job-based health insurance is considered a “qualifying life event,” which means you get a special opportunity to enroll in a new plan outside of the standard open enrollment period.

Before you commit to COBRA, it’s smart to explore all your options. You might find a plan that offers similar (or even better) coverage for a fraction of the cost. Your main alternatives include finding a new plan on the Health Insurance Marketplace, getting temporary coverage with a short-term plan, or even joining a family member’s plan. For Washington residents, there are also state-specific programs that can provide financial assistance. Taking the time to compare these options can save you a significant amount of money and help you find a plan that truly fits your current needs and budget.

Is a Marketplace Plan Right for You?

When you lose your job-based coverage, you have a special 60-day window to enroll in a plan through the Health Insurance Marketplace®. This is one of the most common and practical alternatives to COBRA. The Marketplace allows you to shop for and compare different health plans from various insurance companies. Depending on your income, you may also qualify for subsidies or tax credits that can lower your monthly premium, making it a much more affordable option than COBRA. Exploring the Marketplace gives you the freedom to choose a plan that aligns perfectly with your health needs and financial situation, rather than just sticking with the one you had before.

Comparing Plan Costs and Benefits

While COBRA offers the comfort of keeping the exact same health plan, that familiarity comes at a steep price. You’re suddenly responsible for paying the entire premium—both your share and the portion your former employer covered—plus a 2% administrative fee. This can easily double or triple your monthly healthcare costs, creating a significant financial strain. Before you automatically sign the COBRA paperwork, it’s crucial to take a step back and compare your options. You might discover a plan on the Marketplace that provides excellent coverage, fits your current needs better, and costs significantly less each month. Taking the time to compare your choices is the smartest financial move you can make during this transition.

Understanding Subsidy Qualifications

One of the biggest advantages of choosing a Marketplace plan over COBRA is the potential for financial assistance. Depending on your household income, you may qualify for government subsidies or tax credits that can dramatically lower your monthly premiums. For many people, this makes Marketplace coverage far more affordable than paying the full cost of a COBRA plan. Losing your job-based health insurance is considered a “qualifying life event,” which triggers a Special Enrollment Period. This gives you a 60-day window to shop for and enroll in a new plan, even outside the standard open enrollment season. It’s a critical opportunity to find a high-quality, budget-friendly plan without a gap in coverage. You can find more answers to common questions on our FAQ page.

Switching from COBRA to a Marketplace Plan

What if you’ve already enrolled in COBRA but are now having second thoughts about the high cost? You’re not stuck. You can still switch to a Marketplace plan during the annual Open Enrollment Period or if you have another qualifying life event. The Marketplace is a practical alternative that empowers you to compare different health plans from various insurance companies side-by-side. This allows you to find a plan that not only fits your budget but also includes the doctors and benefits that matter most to you. Don’t feel locked into your COBRA decision if it’s not working for your finances; you have the flexibility to make a change. If you’re ready to explore better options, getting started is simple.

Canceling Your Marketplace Plan When New Coverage Starts

Marketplace plans also offer incredible flexibility if you’re in a temporary situation. For example, let’s say you start a new job that has a 90-day waiting period before your health benefits kick in. You can enroll in a Marketplace plan to cover that gap, ensuring you and your family are protected. Once your new employer-sponsored coverage begins, you can cancel your Marketplace plan at any time without facing a penalty. This makes it a perfect short-term solution, giving you peace of mind without locking you into a long-term contract. It’s a great way to ensure continuous coverage while you transition into your new role and new benefits package. You can even use a provider search tool to ensure your doctors are in-network with a potential short-term plan.

When to Choose a Short-Term Plan

If you only need coverage for a brief period—say, while you’re between jobs or waiting for a new plan to start—short-term health insurance can be a lifesaver. These plans are designed to be a temporary bridge, offering protection against unexpected medical emergencies. While they don’t typically cover pre-existing conditions or routine care like annual check-ups, they are significantly cheaper than COBRA. Some Short-Term Medical plans can provide a basic safety net for a low monthly cost, giving you peace of mind without breaking the bank while you figure out your long-term coverage.

Can You Join Your Spouse’s Health Plan?

If your spouse or partner has health insurance through their employer, this might be your simplest and most cost-effective option. Losing your own job-based coverage is a qualifying life event, which means your spouse can add you to their plan outside of the regular open enrollment period. They’ll typically have 30 to 60 days from the date you lost your coverage to make this change. While it will likely increase their monthly premium, the total cost is almost always less than paying for a COBRA plan on your own. This is a great way to join their plan and ensure you have continuous, comprehensive coverage.

Other Health Programs in Washington State

Living in Washington gives you access to state-specific health programs that can be excellent alternatives to COBRA. The official state marketplace, Washington Healthplanfinder, is the place to start. Here, you can see if you qualify for subsidized health insurance plans based on your income and household size. You might also be eligible for Apple Health, which is Washington’s Medicaid program, providing free or low-cost coverage to those who meet the income requirements. These programs are designed to make health care accessible and affordable for all residents, so it’s definitely worth checking your eligibility before making any decisions.

COBRA vs. Other Plans: How to Choose

With several alternatives available, it’s important to compare them carefully to find the best fit. A good rule of thumb is to make sure any potential plan covers what I call “the 3 Ds”: your doctors, your drugs, and your diagnostics (like lab tests or scans). Start by checking if your current doctors and specialists are in the plan’s network. Next, review the prescription drug formulary to ensure your medications are covered. Finally, look at the costs beyond the premium, including deductibles, copays, and the out-of-pocket maximum. A thorough health insurance comparison ensures you won’t face any surprises down the road.

Tips for Managing a Coverage Gap

A gap in health coverage between jobs can be stressful, but you have time to make a smart decision. The good news is that you have a 60-day window to elect COBRA, and coverage is retroactive once you pay the first premium. Use this time to your advantage. Instead of immediately signing up for a pricey COBRA plan, explore your alternatives to find a better deal. Head straight to the Washington Healthplanfinder to see if you qualify for a subsidized plan that could save you hundreds of dollars a month. If you anticipate a very short gap, a short-term medical plan might offer a low-cost safety net for unexpected emergencies. Being proactive during this window is the key to avoiding a lapse in coverage without overpaying.

Negotiating Coverage with a New Employer

When you start a new job, you’ll often face a waiting period—typically 30 to 90 days—before your new health benefits begin. This is a negotiable part of your compensation package, especially if the company is eager to bring you on board. A common and reasonable request is to ask your new employer to cover your COBRA premiums during this gap. Some companies might offer to help pay for your COBRA costs until their own insurance starts, particularly for in-demand roles. You can frame this as a one-time sign-on benefit that ensures you remain continuously insured without bearing the high cost. It’s a win-win: you get the coverage you need, and the company secures the talent it wants without delay.

Washington State COBRA Resources

If you quit your job in Washington State, your COBRA rights are the same as in any other state under federal law: voluntary resignation is a qualifying event for COBRA coverage at companies with 20 or more employees. Washington also offers additional protections through its insurance code. RCW 48.21.250 requires insurers to offer group coverage continuation, and RCW 48.21.260 guarantees your right to convert to an individual policy when group coverage ends.

Washington residents who resign from their jobs can also explore coverage through Washington Healthplanfinder, the state marketplace. Losing your employer-sponsored coverage qualifies you for a Special Enrollment Period, even outside of annual open enrollment. Depending on your income, you may qualify for premium subsidies that make marketplace plans significantly cheaper than COBRA. The Washington Office of the Insurance Commissioner can help you understand your rights under both federal and state law.

For Washington State employers, every resignation triggers COBRA notification obligations. Whether you manage a small group or large group health plan, staying compliant with notification timelines and documentation requirements is critical. WHIA helps Washington businesses streamline COBRA administration and build benefits programs that retain top talent. Need help managing COBRA for your Washington State business? Talk to WHIA: 833.292.8844 or get started here.

Related Articles

• How Long Does COBRA Last? Your Timeline Explained
• COBRA Loophole 60 Days: How It Works for You
• Resources Hub – Washington Health Insurance Agency

Frequently Asked Questions

Why is COBRA so much more expensive than the health insurance I had as an employee? The sticker shock is real, but there’s a simple reason for the price jump. When you were employed, your company likely paid a significant portion of your monthly health insurance premium, and you only paid the remainder. With COBRA, you become responsible for paying the entire premium yourself, including the part your employer used to cover. You also pay a small administrative fee, which is why the total cost is often 102% of the plan’s full price.

Do I have to sign up for COBRA right away? No, you have some time to make a decision. After your job-based coverage ends, you are given a 60-day “election period” to enroll in COBRA. This window gives you a chance to weigh your options without pressure. A great feature is that if you do decide to enroll, even on the last day, your coverage is retroactive. This means it will backdate to the day you lost your original plan, so you won’t have any gaps in your health insurance.

I work for a small company in Washington. Am I still eligible for continuation coverage? Yes, you most likely are. While the federal COBRA law generally applies to companies with 20 or more employees, Washington State has its own continuation law to protect workers at smaller businesses. This “mini-COBRA” law ensures that employees at companies with fewer than 20 employees are also offered the option to continue their health coverage after leaving a job.

Is COBRA my only choice for health insurance after leaving a job? Not at all. While COBRA is a reliable option for keeping your exact same plan, it’s often not the most affordable one. Losing your job qualifies you for a Special Enrollment Period, allowing you to shop for a new plan on the Washington Healthplanfinder marketplace. There, you might find a more budget-friendly plan or even qualify for subsidies to lower your costs. Other great alternatives include joining a spouse’s health plan or looking into short-term insurance if you only need a temporary bridge.

If I quit my job, can my former employer deny me COBRA? For nearly all voluntary resignations, your employer cannot deny you COBRA. The law is designed to provide a safety net whether you leave on your own terms or are laid off. The only situation where you could be denied coverage is if you were terminated for “gross misconduct,” which refers to very serious actions like theft or intentionally causing harm to the company. For a standard resignation, your eligibility is secure.