The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a federal law allowing most employees, spouses, and their dependents who lose their health coverage under an employer’s group health plan to continue coverage, at their own expense, for up to 18 months. If you choose COBRA coverage, you pay 100% of the premiums, including the share the employer used to pay, plus a small administrative fee.
This can be expensive, but if you’ve already paid a lot towards your deductible or maximum out-of-pocket limit, it may be beneficial to stay with your current plan - at least until it renews. If you start a new insurance plan, the amounts you paid in coinsurance, copayments, or towards your deductible under the old plan will not apply to a new policy. Please note that if your employer has fewer than 20 full-time employees or has gone out of business, COBRA may not be available to you.